CFPB Issues Proposed Rule on Mortgage Servicing
On Aug. 10, 2012, the Consumer Finance Protection Bureau (CFPB) issued a proposed rule covering a number of mortgage servicing topics.
The proposed rule covers several servicing areas including monthly disclosures to borrowers about their mortgage status, warnings on interest rates increases, and requirements on providing borrowers with information and options to avoid foreclosure in early delinquency stages.
On July 9, NAR submitted comment to the CFPB on its outline of proposals for future mortgage servicing rulemaking. NAR supported the CFPB’s proposals for requiring early intervention by servicers to help delinquent borrowers, the development of a single point of contact for borrowers requesting a loan modification or short sale, and firm deadlines for accurate payoff balance information.
NAR is analyzing the proposed rule and will be providing comments. The CFPB is accepting comment on the proposed rule until Oct. 9, 2012.