On Wednesday, July 10, 2024, the Consumer Financial Protection Bureau (CFPB) released its long-awaited and much anticipated proposal to amend Regulation X. As expected, the proposal focuses primarily on default servicing requirements and would impose an entirely new framework for regulating how loss mitigation is handled in the mortgage servicing industry. Other topics are

Three years after it began, the presidentially declared COVID-19 national emergency is officially over. On April 10, 2023, President Biden signed H. J. Res. 7, officially ending the COVID-19 national emergency a month earlier than anticipated. For mortgage servicers who had been led to believe that the national emergency would remain in place for another

CFPB’s Escrow Interpretation Is Causing Confusion Amongst Servicers and Is Likely to Harm ConsumersIn a surprising move to many, the Consumer Financial Protection Bureau (CFPB) recently put the mortgage servicing industry on notice that including certain options for repayment of a shortage in an escrow account statement may violate Regulation X. Specifically, the CFPB explained in its recent edition of the Supervisory Highlights report that one or more

U.S. Fifth Circuit Rejects “Vicarious Liability” Theory under RESPAThe Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2605, regulates loan servicers and makes servicers liable for violations of and consumer-protection regulations promulgated under the act. In many cases, plaintiffs seek to hold banks and mortgage owners—so called “principals”—vicariously liable for a servicer’s violations of RESPA. That theory has met with some success

Do Servicers Have to Monitor Whether a Successor in Interest is in Bankruptcy?  CFPB’s FAQ Suggests the Answer is “Yes”As the effective date for the CFPB’s successor in interest and bankruptcy billing statement requirements quickly approaches, one question we’ve heard multiple times is whether a mortgage servicer is required to know when a confirmed successor in interest is in bankruptcy. The question stems from upcoming provisions in Regulations X and Z that will collectively

CFPB Issues Implementation Guidance for Mortgage Servicing Rule AmendmentsOn March 29, 2018, the Consumer Financial Protection Bureau (CFPB) released two important implementation tools that may help mortgage servicers ensure compliance with recent amendments to the mortgage servicing rules in Regulations X and Z. This release comes shortly after the CFPB published a set of Frequently Asked Questions that primarily addressed issues related to

CFPB Finalizes Amendments to TRID RuleThe Consumer Financial Protection Bureau (CFPB) released final amendments to its “Know Before You Owe” mortgage disclosure rule, which is also known as the TILA-RESPA Integrated Disclosure rule (TRID), on July 7, 2017. As stated in the accompanying press release issued by the CFPB, the amendments “are intended to formalize guidance in the rule, and