Consumer Financial Protection Bureau Clarifies New Mortgage Servicing Rules
The Consumer Financial Protection Bureau (CFPB) recently issued an interim final rule, as well an explanatory bulletin, to further detail and clarify the requirements of the agency's mortgage servicing rules that were finalized in January 2013 (the Servicing Rules). The Servicing Rules implement the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amending the Real Estate Settlement Procedure Act of 1974 (RESPA) and the Truth in Lending Act (TILA) to provide borrowers with more detailed information regarding their loans, ensure that borrowers are not unexpectedly assessed charges or fees, and inform borrowers of alternatives to foreclosures. After issuing the final Servicing Rules, the CFPB received a large number of inquiries from servicers regarding how they can best comply with the Rules. The interim final rule and bulletin address many of the issues raised in those inquiries.