On Jan. 17, 2013, the Consumer Financial Protection Bureau released amendments to regulations X and Z, together known as the Final Servicing Rules.
These new rules touch upon a wide variety of areas, including loss mitigation, force-placed insurance, escrow, and general servicing policies and procedures. They are scheduled to go into effect Jan. 10, 2014.
Since the release of the Final Servicing Rules, mortgage servicers, law firms and industry trade associations have identified provisions that may not have the CFPB’s desired effect, and others that may, in fact, be harmful to consumers. Thankfully, on June 21 the CFPB issued proposed amendments to the rules, many of which directly address the industry’s concerns.