Are There Any Federal Laws Protecting Me from Mortgage Servicers?
Yes. In the years after the 2008 financial crisis, which was largely caused by the lack of regulation in the mortgage market, the government enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010). This Act amended the Real Estate Settlement Procedures Act (RESPA, 1974), which is implemented by Regulation X (2013), and also amended the Truth in Lending Act (TILA, 1968), implemented by Regulation Z (2013).
At the same time, the Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB), a government agency in charge of supervising and enforcing compliance with the aforementioned regulations while at the same time being allowed to impose its own restrictions on the mortgage market.
The main actions required by the Dodd-Frank Act to mortgage servicing companies are as follows:
Providing periodic statements for consumers' mortgage loans
Providing payoff statements to consumers upon request
Disclosure for certain adjustable-rate mortgages (ARMs) and force-placed insurance
Providing prompt crediting of mortgage payments
Correct certain errors made by borrowers regarding their mortgages
Respond to requests for information from borrowers regarding their mortgages
- What Is Predatory Mortgage Servicing?
- What Are the Specific Formal Requirements for Periodic Statements?
- What Are Coupon Books and When Can They Replace Periodic Statements?
- When Are Servicers Allowed to Stop Providing Periodic Statements or Coupon Books?
- How Are Periodic Statements Delivered?
- What Is the Rule on Interest Rate Adjustment Notices?
- When Should I Receive an Interest Rate Adjustment Notice?
- What Information Must Be Included in the Initial and Ongoing Interest Rate Adjustment Notices?
- What Is the Prompt Payment Crediting Rule for Servicing Companies?
- What Are the Prompt Payment Crediting and Payoff Statement Rules for Servicers?
- Can the Loan Servicer Refuse to Provide You with a Payoff Balance Statement within 7 Days?
- Can I Choose My Mortgage Servicing Company?
- Are There Any Rules Regarding Written Communication with Servicing Companies?
- Are Servicers Allowed to Charge a Borrower for Force-Placed Insurance Coverage?
- What Are the General Rules Regarding Servicing Policies, Procedures, and Requirements?
- Are There Any Special Rules for Servicers When Dealing with Delinquent Borrowers?
- What Is the "Successors in Interest Rule" for Servicing Companies?
- How Should I Inform Servicers When I Become a Successor in Interest?
- Am I Liable for the Loan Once Confirmed as a Successor in Interest?
- Can I Change My Mortgage Servicing Company?
- Can I Turn to a Government Agency to Complain Against a Mortgage Servicing Company?
- What Are the Mortgage Servicing Rules Issued by the Consumer Financial Protection Bureau?
- What Is the Periodic Statement Rule for Mortgage Servicers?
- Are There Any Exceptions to the Periodic Statement Rule?
- How Many Periodic Statements Am I Entitled to Receive?