Creditors Beware-New Mortgage Servicing Rules Going Into Effect

The Consumer Financial Protection Bureau (“CFPB”) has issued new mortgage servicing rules which affect a wide variety of mortgage service obligations. These new rules have been incorporated into Regulation Z and Regulation X and will become effective January 10, 2014.

Creditors should take note that the CFPB has made these new servicing rules privately enforceable allowing for the recovery against servicers of actual damages, statutory damages, costs and attorney fees. These new rules include, but are not limited to:

  1. Changes on when to issue periodic mortgage statements and information to be included in the mortgage statements;
  2. Timing of payment change notices;
  3. Requirements concerning the prompt crediting of payments;
  4. Timing to provide payoff statements;
  5. Regulations concerning forced placed insurance;
  6. Requirements related to requests for information and notices of error;
  7. Early intervention requirements and
  8. Loss mitigation procedures.

Should you have any questions or wish to discuss these new regulations in more detail, contact Anthony C. Carlini, at Anthony@handelcarlini.com.