Newsletter - October 2013
In September, the Consumer Financial Protection Bureau (CFPB) announced final guidelines to help mortgage servicers comply with the bureau’s new standards. In January 2013, the CFPB presented national lending and servicing standards that are set to take effect January 2014. A few purposes of the standards include preventing borrowers from getting caught in high-cost, risky loans and establishing stronger protection for homeowners facing foreclosures.
This September, the CFPB presented clarifications to these standards with a list of rule amendments and definitions. These standards were created to build stronger consumer protections for risk mortgages, help eliminate irresponsible practices, and promote a sustainable economy.
Along with the detailed guidelines, plain-language explanations and interim examination procedures are included. Below is a brief breakdown of the final rules presented by the CFPB. According to the CFPB, the rules outlined:
- Clarifying what servicer activities are prohibited in the first 120 days of delinquency.
- Outlining procedures for follow-up on loss-mitigation applications.
- Facilitating servicers’ offering of short-term forbearance plans.
- Clarifying best practices to inform borrowers about address error resolution documents.
- Defining a loan originator.
- Facilitating lending in rural areas.
- Clarifying financing of credit insurance premiums.
- Revising effective dates of loan originator compensation rule provisions.
Along with clarifying prohibited activities, clearly defining terms, and outlining procedures, the standards minimize audit risks for servicers. With the detail and intricacies of the new CFPB standards, mortgage experts see a need for centralized rule management.
With new standards implemented in 2014, it’s important for servicers to be aware and prepared for the updated rules and regulations. Blue Streak Docs is a document retrieval company dedicated to meeting office needs for mortgage and attorney professionals. Our staff is committed and up-to-date with compliance implementation. We keep our eyes on the details, so your employees can stay focused on the big picture. For more information about how we can assist you with document recording, title searches, and property reports, contact our office today at 727-479-0007.