On August 2, 2016, The Bureau of Consumer Financial Protection (“Bureau”) announced it is issuing a final rule amending the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act and the Truth in Lending Act.
The final rule will generally be effective 12 months after the date of publication in the Federal Register. The final rule covers nine major topics, including
- successors in interest
- the definition of delinquency
- how servicers are required to respond to requests for information
- force-placed insurance disclosures
- early intervention for delinquent borrowers
- loss mitigation
- rules for prompt payment crediting
- requirements relating to periodic statements and rules for determining who qualifies as a small servicer.
The final rule is over 900 pages long and is sure to create compliance issues for all mortgage servicers. The industry has already indicated it will be analyzing the rule closely and pushing for changes that are deemed necessary in order to correct or resolve conflicting obligations.
The final rule may be found at the following link: http://files.consumerfinance.gov/f/documents/20160804_cfpb_Final_Rule_Amendments_to_the_2013_Mortgage_Rules.pdf