Review of Recent CFPB Servicing Actions: Bulletin 2021-02 and COVID-19 Proposed Rule

In recent days, the CFPB has taken significant actions that will have a lasting impact on mortgage servicers. First, on April 1, the CFPB issued Bulletin 2021-02, warning servicers that being “unprepared is unacceptable.” This bulletin provides important insight into the CFPB’s supervision and enforcement priorities related to servicers’ handling of the COVID-19 crisis. Next, on April 5, the CFPB released a notice of proposed rulemaking that would provide certain COVID-19-related protections by amending the existing early intervention and loss mitigation sections of Regulation X. Notably, the proposal essentially imposes a moratorium on new foreclosure actions until January 1, 2022.

Join us to learn more about both the CFPB’s Bulletin 2021-02 and the proposed rule. We’ll explain what servicers need to know and what can be done now to prepare for the increased scrutiny that is certainly coming their way.