US Consumer Financial Protection Bureau Proposes Mortgage Servicing Reforms

August 15, 2012
The U.S. Consumer Financial Protection Bureau has proposed amendments to Regulation Z under the Truth in Lending Act and to Regulation X under the Real Estate Settlement Procedures Act that would comprehensively modify the practices of residential mortgage servicers. Among other things, the proposal would impact how servicers credit borrowers for their payments, notify borrowers of changes in their payment obligations, respond to borrower inquiries and provide early intervention and loss mitigation services. This update summarizes key features of the proposal and discusses the timing of its implementation.