Mortgage servicing rules “frequently asked questions” — largely dealing with issues related to bankruptcies – about compliance with revised rules effective April 19 were published by the federal consumer protection bureau Tuesday.
The FAQs issued by the Consumer Financial Protection Bureau (CFPB) concern recent revisions by the agency to its mortgage servicing rules under Regulations X (which implements the Real Estate Settlement Procedures Act (RESPA) and Z (implementing the Truth in Lending Act (TILA)). The revisions to the servicing rules both of which take effect in the middle of next month.
“These questions and answers are not a substitute for Regulation X, Regulation Z, or their official interpretations (also known as the commentary),” the agency points out in its brief comments about the FAQs, adding that Regs X and Z — and their official interpretations – “are the definitive sources of information regarding their requirements.”
The final rules amend certain areas of the bureau’s 2013 mortgage servicing regulations, including successors in interest, definition of delinquency, requests for information, force-placed insurance notices, early intervention, loss mitigation, prompt payment crediting, periodic statements and other issues.
The FAQs largely respond to questions regarding bankruptcies, including periodic statements, coupon books, reaffirmation, successors in interest, and effective date.