WASHINGTON—The CFPB has issued an interim final rule intended to give mortgage servicers more flexibility when communicating about foreclosure prevention options with borrowers who have requested a cease in communication.
The Bureau also issued a proposal to amend its periodic statements requirements.
Both rulemakings are issued under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z). NAFCU said it continues to advocate that credit unions be removed from the CFPB's regulatory authority.
The CFPB's interim rule adds a 10-day window for servicers to provide borrowers with modified notices about foreclosure prevention options and will go into effect Oct. 19. The proposed rule is meant to provide clarity on timing for servicers to transition to providing modified or unmodified periodic statements and coupon books in connection with a consumer’s bankruptcy case, NAFCU noted.
Both measures are out for a 30-day comment period.