Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), has announced the agency's long-expected proposals to implement national mortgage servicing standards.
The CFPB's proposal is seeking to address seven servicer obligations: (1) to correct errors asserted by mortgage loan borrowers; (2) to provide information requested by mortgage loan borrowers; (3) to ensure that a reasonable basis exists to obtain force-placed insurance; (4) to establish reasonable information management policies and procedures; (5) to provide information about mortgage loss mitigation options to delinquent borrowers; (6) to provide delinquent borrowers access to servicer personnel with continuity of contact about the borrower's mortgage loan account; and (7) to evaluate borrowers' applications for available loss mitigation options.
The proposal also seeks to modify and streamline certain existing servicing-related provisions of Regulation X.. The CFPB is also proposing companion regulations implementing amendments to the Truth In Lending ActÂ in Regulation Z.
‘We want to make sure that at all times consumers can get information about how much they owe, what they are paying, and how their payments are being applied,’ says Cordray. ‘And if consumers fall behind on their mortgage, we want them to know how to assess their options and take action.’
Comments on the proposals are being accepted through Oct. 9.