On 8/4/2021, the CFPB Updated it’s “Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Rules” small entity compliance guide. In the version log, which outlines changes that took place to the guide, the guide explains that the August 4, 2021 changes relate to the final rule for servicers relating to the COVID-19 pandemic. Specifically, the rule:
Loss mitigation foreclosure protections: Added temporary procedural safeguards to the loss mitigation requirements.
Loss mitigation incomplete application requirements: Revised reasonable diligence timing requirements for borrowers in a shortterm forbearance program related to COVID-19. It also added the ability to temporarily provide certain COVID-19-related streamlined loan modifications to borrowers based on the evaluation of an incomplete application.
Early intervention live contact: Added additional information servicers must temporarily provide certain borrowers promptly after establishing living contact.
The guide also explains the following:
On June 23, 2020, the Bureau issued an interim final rule to temporarily permit mortgage servicers to offer certain loss mitigation options (e.g., payment deferral and partial claim programs) to borrowers affected by the COVID-19 pandemic based on the evaluation of an incomplete loss mitigation application.
These revisions for these two rules are generally discussed in Appendix B.
Separately, based on frequently asked questions, this version also clarifies certain guidance related to the servicing file and use of multiple electronic systems. (See “Servicing file” in Section 10.5.2.)
The updated guide also includes a number of miscellaneous administrative changes.
The updated guide can be found here.