The Consumer Financial Protection Bureau recently finalized new regulations for loan servicers. Soon, mortgage borrowers who have filed for bankruptcy will have the right to demand greater transparency and more communication from the companies that service their loans.
This is a key change. Under the CFPB’s former mortgage rule, servicers did not have to provide periodic statements or early intervention loss mitigation information to borrowers in bankruptcy.
Penalties for violating this requirement could add up quickly for servicers who are unprepared or underinformed. This paper covers what servicers need to know now to help avoid paying large penalties later.
Date: December 2016