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CFPB issues mortgage servicing compliance bulletin
CFPB issued a compliance bulletin and policy guidance to alert residential mortgage servicers and subservicers of the potential risks to consumers that might occur with the transferring of residential mortgage servicing rights.
The bulletin is slated for publication in the Federal Register today and is applicable beginning Aug. 19 of this year.
CFPB notes concerns in this area are heightened due to the high volume of servicing transfers. The bulletin states that those servicers engaged in a notable amount of servicing transfers should expect that the bureau may require them "to prepare and submit informational plans describing how they will be managing the related risk to consumers."
The bureau may engage in further rulemaking in this area, the bulletin notes. This bulletin replaces CFPB Bulletin 2013-01, Mortgage Servicing Transfers.
The guide is divided into four sections:
- Section A, "General Transfer-Related Policies and Procedures," gives examples of general transfer-related policies that CFPB may evaluate;
- Section B, "Applicability of the New Servicing Rules to Transfers," answers frequently ask questions about Regulation X (implementing the Real Estate Settlement Procedures Act);
- Section C, "Protections under Federal Consumer Financial Law," highlights other federal consumer financial laws applicable to servicing transfers and explains the consequences if servicers do not meet their lawful obligations; and
- Section D, "Plans for Handling Servicing Transfers," informs those servicers that are engaged in significant servicing transfers of the actions CFPB may take.
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