On June 28, 2021, the CFPB issued a long-awaited set of final rules outlining a number of new COVID-19 mortgage servicing requirements and protections. As expected, the CFPB’s recent release includes, among other things, a COVID-19 foreclosure moratorium, additional COVID-19-related early intervention live contact and reasonable diligence requirements, and relief from the CFPB’s anti-evasion requirements for certain COVID-19 loan modifications. These new CFPB rules are effective August 31, 2021, and, therefore, it is imperative that servicers very quickly understand and implement the rules.
Join us to learn more about these important COVID-19 mortgage servicing rules, including tips on implementing the new requirements/protections and handling compliance challenges related to the same.
- On June 28, 2021, the CFPB released its much-anticipated final COVID-19 mortgage servicing rule.
- The rule is set to become effective on August 31, 2021, so servicers have a very short amount of time to digest and implement the new requirements and prohibitions.
- The final rule is similar to what the CFPB originally proposed, with some notable exceptions (e.g., new foreclosure “procedural safeguards”).
- From August 31, 2021, through December 31, 2021, servicers will only be able to make the first notice or filing to initiate foreclosure for many accounts once one of the new “procedural safeguards” is satisfied:
- Complete loss mitigation evaluation
- Abandoned property
- Unresponsive borrower
- The final rule also includes an exception to the anti-evasion clause in Regulation X for certain streamlined modification options and enhanced early intervention live contact requirements.