CFPB Seeks Comment on Mortgage Servicing Rule Assessment Plan
5/12/17 – The CFPB is seeking comment on its newly released plan to assess the effectiveness of the Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule.
In January 2013, the CFPB issued the 2013 RESPA Servicing Final Rule. All of the requirements and related amendments that took effect on January 10, 2014, are referred to as the RESPA mortgage servicing rule. This rule gave borrowers new consumer protections related to mortgage loan servicing, many of which were aimed at helping consumers who were having trouble making their mortgage payments.
The RESPA mortgage servicing rule requires, among other things, that servicers provide disclosures to borrowers related to force-placed insurance, respond to errors asserted by borrowers in a timely manner, and follow certain procedures related to loss mitigation applications and communications with borrowers.
The CFPB is conducting an assessment of the RESPA mortgage servicing rule and will issue a report of the assessment by January 2019. As required by law, the assessment will address the rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act and the specific goals of the rule, using available evidence and data.
The CFPB invites consumers, consumer advocates, housing counselors, mortgage loan servicers, industry representatives, and other interested parties to comment on its assessment plan. Comments can suggest sources of data, offer other recommendations, and generally provide information that would help them grasp the rule’s effectiveness or make improvements.
Comments must be received on or before May 23, 2017.