WASHINGTON (10/16/13)--Communications with family members after a borrower dies, contact with delinquent borrowers, and treatment of consumers who have filed for bankruptcy or invoked certain protections under the Fair Debt Collection Practices Act are addressed in a new bulletin and interim final rule released by the Consumer Financial Protection Bureau (CFPB) on Tuesday.
The releases are meant to clarify portions of pending CFPB mortgage servicing regulations that have not yet been addressed. "As servicing implementation enters its final phases, we heard from many sources that it was important to address these remaining issues to ensure a smooth transition and provide certainty to the market," CFPB Director Richard Cordray said.
The CFPB release provides examples of mortgage servicer policies and procedures that will ensure that family members, heirs, or other parties who have a legal interest in the home are identified and contacted if a mortgageholder dies. Mortgage assumption and loss mitigation measures are also addressed, and the bureau also attempted to answer questions regarding the interplay of the servicing rules, bankruptcy code, and the Fair Debt Collection Practices Act (FDCPA). The bureau has also clarified aspects of regulations that require consumers to receive housing counseling before taking out a high-cost mortgage.
The CFPB interim final rule also addresses:
For the full CFPB release, use the resource link.