In keeping with its promise to provide further guidance to the industry on the mortgage loan rules that go into effect in January, the CFPB has issued an interim final mortgage servicing rule and a bulletin addressing servicing issues.
The main thrust of the interim final rule is to clarify the interplay between the mortgage servicing rules, bankruptcy law, and the Fair Debt Collection Practices Act. The rule also addresses counseling requirements under the 2013 HOEPA final rule for a small set of loans that are neither covered by the Real Estate Settlement Procedures Act nor subject to disclosures for open-end credit under Regulation Z. In the supplementary information, the CFPB indicates that these would typically be loans secured by manufactured housing that do not involve residential real property. The rule provides that for such loans, counseling must occur after the consumer receives the required HOEPA disclosure.
The bulletin includes clarifications regarding communications by servicers when a borrower invokes the FDCPA’s cease communications protections and a servicer’s responsibility to conduct home retention efforts after a borrower dies.
For a detailed summary of the rule and bulletin, see our legal alert.