CFPB Finalizes Servicing Rule Revisions

Today the CFPB finalized the final mortgage servicing rules update that it proposed at the end of 2014.  The rule adds new protections for mortgage borrowers in financial distress, including provisions that require servicers to:

• Provide some borrowers with foreclosure protections more than once over the life of the loan;
• Provide protections to an expanded universe of successors in interest upon the death of a borrower;
• Provide more information to borrowers in bankruptcy;
• Notify borrowers when their loss mitigation applications are complete;
• Comply with specific timing requirements for loss mitigation activities when servicing rights are transferred;
• Avoid wrongful foreclosures by refraining from pursuing those actions until loss mitigation applications are properly dispositioned;