The Consumer Financial Protection Bureau (CFPB) issued an interim final rule Wednesday allowing flexibility to mortgage servicers about when they can communicate foreclosure options to borrowers who have requested communications cease. The interim final rule goes into effect Oct. 19.
The bureau finalized changes to its mortgage servicing rules in 2016, requiring mortgage servicers to send written notices, called early intervention notices, to consumers at risk of foreclosure.
Once borrowers become delinquent, servicers are required to send them notices every 45 days informing them of available foreclosure prevention options, but the notices cannot be sent more than once in a 180-day period.
The interim final rule gives a 10-day window after the 180-day period to provide the notices.
The bureau also issued a proposed rule that makes several technical changes to the 2016 final rule. Per the CFPB, these are designed to provide greater certainty for mortgage servicers regarding the timing for providing periodic statements.
Comments will be open on the interim final rule and proposed rule for 30 days after they are published in the Federal Register, which is expected in the coming days.
Additional details can be found on CUNA’s Removing Barriers Blog.