Recently, the US Consumer Financial Protection Bureau
("CFPB") published comprehensive proposed rules (the
"Proposed Rules") in the nature of national servicing
standards applicable to servicers of residential mortgage
loans.1 The Proposed Rules would amend Regulation X,
which implements the Real Estate Settlement Procedures Act
("RESPA"), and Regulation Z, which implements the Truth
in Lending Act ("TILA"). The Proposed Rules expand upon a
preliminary proposal released in summary form in
April 2012.
The Proposed Rules would implement the mortgage servicing
standards set forth in the Dodd-Frank Wall Street Reform and
Consumer Protection Act ("Dodd-Frank Act"), and other
proposed servicing requirements placed on five of the nation's
largest banks as part of the national mortgage servicing settlement
between forty-nine states and these five banks (the "National
Mortgage Settlement"), as well as other corrective guidance
from the federal banking regulators. If
