|Author||Consumer Financial Protection Bureau|
US Consumer Financial Protection Bureau Proposes New Mortgage Servicing Rules
The Consumer Financial Protection Bureau has proposed the first set of national mortgage servicing regulations and invites comments until October 9, 2012. It plans to make the final rules effective on January 21, 2012.The CFPB proposal requires monthly disclosure to borrowers about their mortgage status. Servicers must provide warnings when interest rates rise for some instruments, including an estimate of the new monthly payment after adjustment. They must provide early information and options to avoid foreclosure in the early stages of delinquency. There must be a single point of contact where borrowers can seek assistance. The CFPB will have the power to inspect mortgage servicing operations as part of its regulatory obligations.