WASHINGTON—The CFPB has announced that it is seeking feedback on its plan to assess the effectiveness of the 2013 Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule. The bureau said it will issue a report of the assessment by January 2019.
The Dodd-Frank Act requires the CFPB to review certain rules within five years after they take effect, thus this request for feedback. Comments to the CFPB will be due 60 days after its request for information is published in the Federal Register. NAFCU said it plans to issue a Regulatory Alert on the request.
The 2013 RESPA mortgage servicing rule went into effect on Jan. 10, 2014. This rule is aimed at giving borrowers new protections related to mortgage loan servicing by requiring servicers to provide borrowers with disclosures related to force-placed insurance, respond to errors asserted by borrowers in a timely manner, and follow certain procedures related to loss mitigation applications and communications with borrowers, NAFCU noted, adding that it has resources dedicated to this rule on its website, including final summaries, blog posts and articles.
“We see conducting the assessment as an opportunity. Conducting the assessment will advance our knowledge of the benefits and costs of the key requirements of the RESPA mortgage servicing rule. The assessment will also provide the public with information on the mortgage servicing market, and help us to fulfill our commitment to be an evidence-based and effective agency,” the CFPB stated.