The CFPB Finalizes New Mortgage Servicing Rules

On January 17, 2013, the Consumer Financial Protection Bureau finalized rules implementing the mortgage loan servicing requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rules amend Regulation X, which implements the Real Estate Settlement Procedures Act of 1974 and Regulation Z, which implements the Truth in Lending Act. The amendments will provide borrowers with detailed information regarding their loans, ensure that mortgage servicers do not unexpectedly assess borrowers with charges and fees, and ensure that borrowers are informed of alternatives to avoid foreclosure. Furthermore, the final rules will provide borrowers with more timely and accurate responses to their complaints by requiring servicers to follow certain error resolution procedures. The rules become effective January 10, 2014.