CFPB Rolls Out Additional Mortgage Reforms
The Chinese Water Torture of mortgage reform proposals continues today as the CFPB releases its final mortgage servicer rules at a field hearing in Atlanta. The CFPB is simulcasting the event and the introductory comments offered by its officials at these get togethers provide a nice overview of what we have in store. The servicing regulations are another Dodd-Frank inspired mandate that impose a new series of statement modifications, notice requirements, and foreclosure prevention efforts. Even though the regulations haven’t been released yet, some of the specifics are already the subject of comment in today’s papers and by the trades. CUNA is reporting that an exemption from certain of the mortgage disclosure requirements outlined in the proposal will be increased from institutions that service 1,000 mortgages a year to those that service 5,000. This is a nice victory for industry advocates, including our Association, who argued that the 1,000 mortgage threshold was too low.
The regulations also impose national restraints on the foreclosure process by, for example, forbidding servicers from sending a first foreclosure notice until a mortgage is at least 120 days delinquent. This part of the proposal is similar to existing New York State law, which mandates a 90-day pre-foreclosure notice. I’ll have more to comment on tomorrow, which means I’ll be spending a good chunk of my day reviewing this stuff. I love my job, but sometimes it’s as fun as going to the dentist, which is what my wife has to do in a few minutes, leaving me in charge of getting the kids ready for school. Time to end today. . .see you tomorrow.