Protections for Borrowers Affected by the COVID-19 Emergency Under RESPA, Regulation X

April 9, 2021 CFPB, COVID-19 actions 0

Title:
Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X
Subject: Foreclosures, RESPA, Reg X
Agency: CFPB
Status:
Proposed rule
Summary:

The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule to amend Regulation X to assist mortgage borrowers affected by the COVID-19 emergency. The final rule establishes temporary procedural safeguards to help ensure that borrowers have a meaningful opportunity to be reviewed for loss mitigation before the servicer can make the first notice or filing required for foreclosure on certain mortgages. In addition, the final rule would temporarily permit mortgage servicers to offer certain loan modifications made available to borrowers experiencing a COVID-19-related hardship based on the evaluation of an incomplete application. The Bureau is also finalizing certain temporary amendments to the early intervention and reasonable diligence obligations that Regulation X imposes on mortgage servicers.
FR Doc: 2021-13964
Date proposed: April 9, 2021
Comments due date: May 10, 2021
Effective date:

Aug. 31, 2021
Rule compliance date:
Agency release:

Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X
Related Reg Report item(s):

Preventing ‘avoidable foreclosures’ is focus of proposed rules issued by bureau