It’s unlikely the mortgage lending and servicing industry will see any big changes at the CFPB right away – at least in terms of new regulations and rule-makings – once Richard Cordray formally exits the stage as director of the bureau, most experts said. “Until the president installs a new director, it should be business as usual,” former CFPB official Benjamin Olson, now a partner with Buckley Sandler in Washington, DC, told Inside the CFPB. As excited as some mortgage industry representatives were upon hearing the news, all of the bureau’s rulemakings related to mortgage lending and servicing have already been issued and finalized, so that’s all water under the bridge. A new director will not be able to willy-nilly revoke or ...
Trade groups representing mortgage lenders and servicers generally support the change the bureau is making to its 2013 mortgage servicing rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) as it relates to certain early-intervention notices. In mid-October, the CFPB issued an interim final rule amending the timing requirements for providing subsequent written early-intervention notices to borrowers who have requested a cease in communication under the Fair Debt Collection Practices Act. The CFPB’s 2016 amendments to the 2013 mortgage servicing rules generally require that servicers send notices to delinquent borrowers every 45 days to inform them of available foreclosure prevention options. For borrowers who have invoked their cease-communication requirements, servicers must ...
Back in October, the CFPB issued a proposed rule to clarify the timing for mortgage servicers to transition to providing modified or unmodified periodic statements and coupon books in connection with a consumer’s bankruptcy case. Since its 2016 mortgage servicing rule was adopted, the bureau said it has received significant input that certain aspects of the single-billing-cycle exemption and timing requirements may be more complex and operationally challenging than it realized, and that the relevant provisions may be subject to different interpretations. Therefore, the CFPB proposed several revisions to replace the single-billing-cycle exemption with a single-statement exemption. More specifically, the bureau proposed to revise the single-billing-cycle exemption to instead provide a single-statement exemption for the next periodic statement or coupon ...
More Industry Advice for a Post-Cordray CFPB. Competitive Enterprise Institute financial policy expert John Berlau said last week, “Richard Cordray’s impending resignation as director of the CFPB is long overdue.... Growth of CFPB Leveling Off. The total number of employees at the CFPB came to 1,668 for fiscal year 2017, up 20 positions from the year before, according to the bureau’s latest financial statements for the last two years.... GAO Signs Off on CFPB Financial Statements. The Government Accountability Office audited the CFPB’s financial statements for fiscal years 2016 and 2017, and found they are “presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.”...
Fannie Mae’s Servicing Marketplace that connects servicers and sellers during transfers, is expected to be up and running shortly after Thanksgiving. In a recent servicing guide update, the GSE noted that certain loans delivered under whole loan servicing released commitments taken on or after Dec. 4, 2017, will be bifurcated if sellers participate in its servicing execution tool or the Servicing Marketplace.The mortgage giant designed the application to simplify and bring new concurrent transfers of servicing options to customers. Fannie noted that it also hopes to provide certainty of sale, execution, and process efficiency. Lenders must be approved to participate in the servicing marketplace.
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