CFPB’s Final Mortgage Servicing Rule Now in Effect

Logo for the Consumer Financial Protection Bureau (CFPB)

As forbearance programs are expected to begin expiring in the upcoming weeks and months, credit unions are reminded of a recent Consumer Financial Protection Bureau (CFPB) final rule.

The bureau’s rule temporarily amends certain mortgage servicing requirements under Regulation X — which implements the Real Estate Settlement Procedures Act (RESPA) — to assist borrowers experiencing a COVID-19-related hardship.

Key components of the final rule, which takes effect Aug. 31, are summarized here and include:

  • Scope
  • Small Servicer Exemption
  • Defines COVID-19 Related Hardship
  • Temporary Procedural Safeguards
  • Streamlined Loan Modification
  • Early Intervention Requirements
  • Reasonable Diligence

For the rule’s specifics, please refer to the CFPB’s  final rule and executive summary.

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