Today, the CFPB issued final rules amending Regulation X (Real Estate Settlement Procedures Act (“RESPA”)) and Regulation Z (Truth in Lending Act (“TILA”)). The amendments focus on mortgage servicing requirements and servicer obligations, and largely track the CFPB’s proposed rules issued August 10, 2012. The CFPB’s announcement of the final rules includes the preamble, regulatory text and official interpretations of the final rules. The final rules and supporting documentation have not yet been published in the Federal Register.

The stated goal of the rules are to provide better disclosure to consumers of their mortgage loan obligations and to provide better information and assistance with available options to consumers having difficulties meeting their mortgage loan obligations. As with the proposed rules, the two final rules are set forth in different notices titled “2013 RESPA Servicing Final Rule” and “2013 TILA Servicing Final Rule.” The Major Topics covered in each are listed below:

The Regulation Z amendments cover:

  • Periodic Billing Statements;
  • Interest Rate Adjustment Notices; and
  • Prompt Payment Crediting and Payoff Statements.

The Regulation X amendments cover:

  • Force-Placed Insurance;
  • Error Resolution and Information Requests;
  • General Servicing Policies, Procedures and Requirements;
  • Early Intervention With Delinquent Borrowers;
  • Continuity of Contact With Delinquent Borrowers; and
  • Loss Mitigation Procedures.

The final rules (and supporting material) span 753 pages and will take effect on January 10, 2014. Prior to the effective date, mortgage loan servicers should take the time to review their business practices and implement any necessary changes. We will continue to post more detailed analysis and commentary regarding the amendments as the full scope of the final rules is assessed.