Regulatory Alert examines CFPB’s mortgage servicing rule

NCUA issued a Regulatory Alert (21-RA-08) this week on the Consumer Financial Protection Bureau’s June 30 final Regulation X rule to assist borrowers affected by the pandemic. The final rule only applies to servicers that service mortgages secured by a borrower’s principal residence and does not apply to small servicers.

The rule is effective on August 31 and NCUA urges credit unions to “review the rule in its entirety and ensure compliance with these temporary amendments.”

The rule:

  • Defines COVID-19 related hardship to mean “a financial hardship due, directly or indirectly, to the national emergency for the COVID-19 pandemic declared in Proclamation 9994 on March 13, 2020.”

 

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