Federal Register: CFPB Issues Interim Final Rule On Mortgage Servicing Notices

The Consumer Financial Protection Bureau ("CFPB") issued an interim final rule to adjust the timing requirements for a servicer to provide an early intervention notice to a borrower that has invoked "cease communication" rights under the Fair Debt Collection Practices.

The interim final rule is effective October 19, 2017. The interim final rule amends a provision of the Regulation X mortgage servicing rules issued in 2016 that required mortgage servicers, in certain situations, to provide an early intervention notice on exactly the 180th day after a previous notice had been issued to a delinquent borrower. The interim final rule addresses the concern that compliance would be made difficult if the 180th day fell on a weekend or a holiday. As a result, the CFPB amended the requirement to allow for servicers to provide the required notice within ten days of the 180-day threshold to "alleviate any unintended challenges and facilitate timely provision of written early