Compliance: New mortgage servicing rules now effective

Thursday, April 19 marked the effective date of the second round of amendments to the Consumer Financial Protection Bureau’s (CFPB) mortgage servicing rules, finalized August 2016. This means confirmed successors in interest are now entitled to the same servicing protections available to borrowers under both Regulation Z and Regulation X.

It also means that credit unions are now required to provide modified periodic statements on residential mortgage loans to borrowers who have filed for bankruptcy, unless an exemption applies.

The rule provides that the credit union must provide a modified periodic statement in connection with a closed-end consumer credit transaction secured by a dwelling to a borrower who has filed for bankruptcy unless one of the following exemptions applies:

 

continue reading »