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April 25, 2012 – NAFCU members aired concerns over several aspects of a future rulemaking on mortgage servicing standards in a Small Business Review Panel meeting hosted Tuesday by the Consumer Financial Protection Bureau.

The meeting was held to garner small entities' views on key elements of an eventual proposed rule for mortgage servicers and questions the CFPB wants to ask commenters.

Topics in Tuesday's review panel discussion included periodic payments and coupon books, adjustable-rate mortgage disclosures, force-placed insurance, error resolution and responses to inquiries, reasonable information management policies, early intervention and continuity of contact, prompt crediting and payoff amounts and the rule's potential impact on the cost of business credit.

Participants offered the most response on the periodic statement element. As detailed earlier by the bureau, this portion of the future proposed rule would require a breakdown of payments by principal, interest, fees, and escrow; amount and due date of the next payment; and, for delinquent borrowers, inclusion of alerts and information about counselors who can help them work with servicers and avoid foreclosure.

NAFCU member representatives in Tuesday's meeting included:

• Tiffany Michel, vice president of lending at Omaha Police FCU (Omaha, Neb.);
• David Wright, president/CEO of Services Center FCU (Yankton, S.D.);
  
• Victor Petroni, senior vice president of lending at First New England FCU (East Hartford, Conn.); and
• Christine Wiley, president/CEO of Rocky Mountain Law Enforcement FCU (Denver).

Dillon Shea, NAFCU's regulatory affairs counsel, attended the review panel meeting.