Publications

U.S. Consumer Financial Protection Bureau Issues Rules on Mortgage Servicing; Creates New Rights for Borrowers, Raising Issues Regarding Legal Authority For Foreclosure Action Prohibition
DechertOnPoint
January 24, 2013

On January 17, 2013, the Consumer Financial Protection Bureau (“Bureau”) took another major step in the restructuring of the U.S. residential mortgage sector by issuing final rules (collectively, the “Rule”) regarding mortgage servicing. The Rule implements provisions of the Dodd-Frank Act (“DFA”) that amended the Real Estate Settlement Procedures Act (“RESPA”) and Truth in Lending Act (“TILA”). Among other things, the Rule seeks to address concerns about efficient and effective communications between servicers and borrowers, especially in the case of borrowers experiencing difficulty making their payments. This update describes some of the key aspects of the Rule, which will become effective on January 10, 2014.

Read “U.S. Consumer Financial Protection Bureau Issues Rules on Mortgage Servicing; Creates New Rights for Borrowers, Raising Issues Regarding Legal Authority For Foreclosure Action Prohibition.”