The CFPB issued the 2021 Mortgage Servicing COVID-19 final rule amending early intervention and loss mitigation requirements under the Real Estate Settlement Procedures Act. The final rule:
- establishes temporary procedural safeguards to help ensure that borrowers have a meaningful opportunity to be reviewed for loss mitigation before the servicer can make the first notice or filing required for foreclosure;
- temporarily permits mortgage servicers to offer COVID-19 related streamlined loan modifications without a complete loss mitigation application;
- requires additional information be provided to delinquent borrowers promptly after early intervention live contact is established; and
- establishes requirements for when servicers must renew reasonable diligence efforts to obtain complete loss mitigation applications from certain borrowers.
The rule adoption is effective August 31, 2021.
Click to view the CFPB Final Rule Amending Regulation X: https://www.tenaco.com/wp-content/uploads/2021/07/CFPB-Final-Rule-Amending-Regulation-X-06-28-21.pdf
Click to view the CFPB Final Rule Amending Regulation X-Executive Summary: https://www.tenaco.com/wp-content/uploads/2021/07/CFPB-Final-Rule-Amending-Regulation-X-Executive-Summary-06-28-21.pdf
