US Consumer Financial Protection Bureau Proposes New Mortgage Servicing Rules
| Date Published | 8/13/2012 |
| Author | Consumer Financial Protection Bureau |
| Theme | |
| Country | United States |
US Consumer Financial
Protection Bureau Proposes New Mortgage Servicing Rules
The Consumer Financial Protection Bureau has proposed the
first set of national mortgage servicing regulations and invites comments until
October 9, 2012. It plans to make the final rules effective on January 21,
2012.The CFPB proposal requires monthly
disclosure to borrowers about their mortgage status. Servicers must provide
warnings when interest rates rise for some instruments, including an estimate
of the new monthly payment after adjustment. They must provide early
information and options to avoid foreclosure in the early stages of
delinquency. There must be a single point of contact where borrowers can seek
assistance. The CFPB will have the power to inspect mortgage servicing
operations as part of its regulatory obligations.