An interim rule by the Consumer Financial Protection Bureau (CFPB) gives mortgage servicers more flexibility to communicate about foreclosure prevention options with borrowers who have requested a cease in communication.Another CFPB rule provides clarity about when to provide periodic statements to consumers in connection with their bankruptcy case.
“Today’s action should make it easier for mortgage borrowers to receive timely information from their mortgage servicers about available options for saving their home, even if they have submitted a request to cease communication,” CFPB Director Richard Cordray said. “In addition, we are proposing changes to clear up confusion about when to provide periodic statements with important loan information to borrowers in bankruptcy.”
According to an article in Financial Regulation News, “the interim final rule gives servicers a longer, 10-day window to provide the modified notices. The bureau believes that this change offers greater certainty for servicers’ ability to comply with the rule, without undermining important borrower protections. The interim final rule becomes effective on Oct. 19, 2017.”
The comment period on both the interim final rule and the proposed rule will close 30 days after publication in the Federal Register. Read the full article here.