CFPB Offers Additional Guidance on Mortgage Servicing Rules

CFPB Offers Additional Guidance on Mortgage Servicing Rules

10/16/2013 BY: CARRIE BAY

The Consumer Financial Protection Bureau (CFPB) released a bulletin and interim final rule Tuesday to provide greater clarity to the market concerning mortgage servicing rules that take effect in January 2014. The clarifications address contact with delinquent borrowers, communications with family members after a borrower dies, and treatment of consumers who have filed for bankruptcy or invoked certain protections under the Fair Debt Collection Practices Act (FDCPA).

“As servicing implementation enters its final phases, we heard from many sources that it was important to address these remaining issues to ensure a smooth transition and provide certainty to the market,” said CFPB Director Richard Cordray.

Stressing that many borrowers “continue to experience serious problems seeking loan modifications or other alternatives to avoid foreclosure” still today, the CFPB said these new rules are intended to establish strong protections for struggling homeowners and protect them from “costly surprises and runarounds by their servicers.”

 

 

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