CFPB Releases Small Entity Compliance Guide for Mortgage Servicing Rules

Financial Services Alert

Firm Alert

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In January 2013, the Consumer Financial Protection Bureau (CFPB) issued new rules that relate to mortgage servicing. These rules are implemented in both Regulation X and Regulation Z. Generally, the Mortgage Servicing Final Rules touch upon nine areas including general servicing policies and procedures, loss mitigation, and periodic statements, among other things. These rules are set to take effect January 10, 2014.

Recently, the CFPB released a Small Entity Compliance Guide for the Mortgage Servicing Final Rules, which is available on the CFPB’s website. While designed for smaller businesses with limited legal and compliance staff, the Guide is a useful resource for servicers of all sizes. It provides an easy-to-use summary of all of the new rules as well as any corresponding official CFPB commentary. It also provides tips for implementation that may be helpful as servicers prepare to comply. Finally, it serves as a valuable source of information for the industry to utilize when interpreting the various provisions.

Previously, in May 2013, the CFPB released plain-language video guides summarizing each of the mortgage-related rules. The publication of the Small Entity Compliance Guide is another step in the CFPB’s ongoing efforts to assist mortgage servicers with the interpretation and implementation of the new regulations. Going forward, the CFPB confirmed in the Guide that they expect to issue proposed amendments to the Mortgage Servicing Final Rules in June and August 2013. At least one such amendment will likely focus on the loss-mitigation rules found in Regulation X.

If you have any questions about the Small Entity Compliance Guide for the Mortgage Servicing Final Rules or any other CFPB rule matters, please contact one of the attorneys in the Financial Services Litigation and Compliance Team at Bradley.