Under the Consumer Financial Protection Bureau’s updated mortgage servicing rules, credit unions are required to include policies and procedures relating to “successors in interest.”
Under the new rules, the requirements are triggered as soon as a mortgage servicer receives notice of the existence of a potential successor in interest. This happens even if the servicer doesn’t know at the time of initial contact whether a potential successor in interest meets the true definition of the term.
So credit unions may not wait until they have reason to believe the person is in fact a successor in interest to engage in the required communication with them.
However, credit unions are not required to conduct a search for potential successors if they have not received actual notice of their existence.
Credit unions, upon notice of the death of a borrower or any transfer of mortgaged property, must: