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3 Takeaways (a Litigator’s Perspective) from CFPB Supervisory Highlights

June 27, 2016

Authors

Douglas Thompson

3 Takeaways (a Litigator’s Perspective) from CFPB Supervisory Highlights

June 27, 2016

by: Douglas Thompson

The CFPB recently issued its newest edition of Supervisory Highlights Mortgage Serving Special Edition, Issue 11 (June 2016).

From a litigator’s perspective, the Supervisory Highlights do more than summarize recent supervisory findings, they also shine a light on future examination and putative class action risks that are emerging. The CFPB is providing key insights into what it believes should be industry standards. Banks and mortgage servicers should read carefully both the specific findings summarized and slightly more subtle clues to evolving future CFPB requirements.  Here are three takeaways on the Highlights from a financial services class action litigator’s perspective:

  • ECOA & Special Servicing Populations Continue to be a Strong CFPB focus.
  • In section 2, “Our approach to mortgage servicing examinations,” the CFPB uses a fair amount of real estate to highlight ECOA requirements. In fact, the report states clearly “…Supervision will be conducting more comprehensive ECOA Targeted Reviews of

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    CFPB Clarifies Mortgage Servicing Rules

    October 28, 2013

    Authors

    Danielle Parrington and Jennifer Odom

    CFPB Clarifies Mortgage Servicing Rules

    October 28, 2013

    by: Danielle Parrington and Jennifer Odom

    In January of 2013, the Consumer Financial Protection Bureau (“CFPB”) issued the new Mortgage Servicing Rules (the “Rules”), which go into effect on January 10, 2014.  The Rules establish extensive protections for borrowers, particularly delinquent borrowers who are facing foreclosure.

    On October 15, 2013, the CFPB issued new guidance on the Rules in order to resolve certain issues of interpretation regarding servicer communications with borrowers.  The bulletin (CFPB Bulletin 2013-12) and interim final rule issued on October 15, 2013 clarify three main issues: (1) how mortgage servicers should communicate with family members of a deceased borrower; (2) how mortgage servicers should contact delinquent borrowers under the Early Intervention Rule; and (3) how certain provisions of the Rules interact with the “cease communications” requirement of the Fair Debt Collection Practices Act.

    1. Communications with Family Members of a Deceased Borrower

    The Rules require mortgage servicers to implement

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    CFPB Finalizes Amendments To New Mortgage Servicing Rules

    September 30, 2013

    Authors

    Amy Thompson

    CFPB Finalizes Amendments To New Mortgage Servicing Rules

    September 30, 2013

    by: Amy Thompson

    On September 13, 2013, the Consumer Financial Protection Bureau (“CFPB”) issued final amendments and clarifications to its mortgage servicing regulations, which go into affect January 10, 2014.  These rules were initially issued in January 2013 and have been amended based on comments received during the implementation period.  The rules relating to loss mitigation procedures are set out in Regulation X of the Real Estate Settlement Procedures Act.  (12 CFR § 1024.41.)  Among the important loss mitigation rules that go into effect on January 10, 2014:

    I.    Rules Affecting Foreclosures.

    • Servicers may no longer begin a foreclosure until the borrower is more than 120 days delinquent.  In some states it is not uncommon for foreclosures to begin when borrowers are delinquent by as a little as 60 days.  It is therefore important that servicers take note of this new restriction.  Servicers must delay first legal action until the borrower
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    Financial Services Update – April 15, 2011

    April 18, 2011

    Authors

    Matt Jessee

    Financial Services Update – April 15, 2011

    April 18, 2011

    by: Matt Jessee

    Shutdown Averted, House Passes Budget, Debt Ceiling Vote Next

    Last Friday night, Senator Harry Reid (D-NV), Speaker John Boehner (R-OH), and President Obama came to an agreement to fund the federal government for the remainder of the fiscal year, averting a possible shutdown.  On Thursday, the House passed the legislation by a bipartisan vote of 260-167.  59 Republicans voted against the bill, and 81 Democrats voted for it.  Hours later, the Senate acted with far less suspense but again on a bipartisan 81-19 roll call.  With over six months of the current fiscal year already completed, the funding bill reduces the spending level by nearly $38 billion below what it was when the new Congress began in January, making it the largest one-year cut from the President’s budget request in the nation’s history.

    This Friday, the House approved a fiscal year 2012 budget resolution drafted by Budget Committee Chairman Paul

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