What Are the General Rules Regarding Servicing Policies, Procedures, and Requirements?

Servicing companies must pre-establish policies and procedures reasonably designed to provide accurate and timely information to borrowers. Servicing companies must establish procedures to properly evaluate loss mitigation applications, facilitate oversight and compliance by servicers, facilitate the transfer of information, inform borrowers of written error resolution, and complete information request procedures. The reasonableness of a servicer's policies and procedures takes into account the size, scope, and nature of the servicer’s operations. In addition, servicers must maintain certain documentation for each mortgage loan for that can be compiled into a servicing file within five days.

The local Consumer Financial Protection Bureau (CFPB) is responsible for supervising servicers within their jurisdiction. However, there is no right for borrowers to enforce these provisions.

Tellus TIP:

Please note that small-size servicers are exempt and not required to comply with these requirements.