Removing Barriers Blog

Summary of Interim Final Rule: CFPB Mortgage Servicing Under RESPA (Reg X)
Posted October 30, 2017 by CUNA Advocacy

On October 16, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule to clarify a provision in the 2016 Mortgage Servicing Final Rule, relating to Regulation X, the Real Estate Settlement Procedures Act (RESPA), regarding the time period within which written early intervention notices must be delivered to borrowers who have exercised their right to cease communications under the Fair Debt Collection Practices Act (FDCPA).  RESPA provides that a FDCPA-subject servicer must provide a written early intervention notice on a periodic basis, no more than once every 180 days.  

During the public comment period, mortgage servicers expressed concern that the 180-day requirement, read in conjunction with other RESPA notice requirements, would necessitate such notice to occur exactly on the 180th day only. As this interpretation was unintended by CFPB, the interim final rule clarifies that such notice under RESPA for borrowers who have initiated a cease communication under their FDCPA rights, may be delivered within a 10-day window, which occurs at the end of the 180-day period.  

Small servicers under $10 billion in assets that service fewer than 5000 loans—all of which they or an affiliate owned or originated, continue to be exempt from the mortgage servicing requirements, including this interim final rule. 

The interim final rule is effective on October 19, 2017, with comments accepted until November 15, 2017.