What Are the Mortgage Servicing Rules Issued by the Consumer Financial Protection Bureau?

The Dodd-Frank Act, TILA and RESPA authorize the Consumer Financial Protection Bureau (CFPB) to implement and issue additional consumer protection regulations. As a result, in 2013, the CFPB approved Regulation X and Regulation to implement both RESPA and TILA, including certain mortgage servicing specific rules.

Requirements imposed by the CFPC on mortgage servicing companies include:

  • Successors in interest

  • Error resolution and information requests

  • Force-placed insurance

  • General servicing policies, procedures and requirements

  • Early intervention with delinquent borrowers

  • Continuity of contact with delinquent borrowers

  • Loss mitigation

  • Interest rate adjustment notices for ARMs

  • Prompt crediting of mortgage payments and responses to requests for payoff amounts

  • Periodic statements for mortgage loans

  • Small servicers

  • Bankruptcy periodic statements

Tellus TIP:

Note that Regulation X usually uses the term "borrower", whereas Regulation Z use the term “consumer”. Most of the time you may use these terms interchangeably, since they tend to refer to the same individual but from a different perspective.