Removing Barriers Blog

Comments Submitted to CFPB on COVID-19 Loss Mitigation Options Under RESPA (Regulation X)
Posted August 14, 2020 by dyi

CUNA submitted comments to the CFPB in response to their interim final rule titled, “Treatment of Certain COVID-19 Loss Mitigation Options Under RESPA (Reg X).” This rule would amend Regulation X to temporarily permit mortgage servicers to offer certain loss mitigation options based on the evaluation of an incomplete loss mitigation application.  

In this comment letter, CUNA generally supports the interim final rule as a helpful response to CUNA President Nussle's March request for "temporary flexibility for the consumer disclosure and application processing requirements related to loss mitigation efforts, especially for COVID-19 related loan modifications, forbearance agreements, and repayment plans."

In addition, this letter calls for clarification of a confusing hypothetical example provided by the CFPB, expresses our preference for no additional notice requirements related to this regulatory change, and advocates for additional changes to provide servicers with similar flexibility for loss mitigation in all emergencies and disasters, not just the COVID-19 emergency.

CUNA will continue to work with the CFPB to ensure credit unions have the regulatory flexibility necessary to reach the right solutions for members in need of assistance during emergencies and disasters.