Consumer Financial Protection Bureau Proposes Revamping Mortgage Servicing Rules

1 min

Andrew Bigart and Michael Aphibal published “Consumer Financial Protection Bureau Proposes Revamping Mortgage Servicing Rules” in the winter 2024 issue of the Real Estate Finance Journal. The following is an excerpt:

The Consumer Financial Protection Bureau (CFPB) has released its much-anticipated proposed update to the mortgage servicing rules that would make permanent many of the temporary servicing rules enacted in response to the COVID-19 pandemic. The proposed changes would represent a large shift in servicer practices by allowing servicers to offer loss mitigation relief to borrowers earlier than servicers can do now and without a “complete application” under the current mortgage servicing rules. The proposed rule would also provide updated borrower protections related to loss mitigation options, early intervention communications, and language requirements for borrower communications.