Comments due on CFPB proposal to correct servicing rule
With less than two weeks to go before implementation (if taking advantage of the Bureau's guidance suggesting that implementation three days early is a good idea), the CFPB has announced an interim final rule tweaking one of the early intervention (§ 1024.39 of Regulation X) changes effective October 19. The change only affects servicers who are subject to the Fair Debt Collection Practices Act with respect to mortgage loans on which consumers have invoked their cease communication rights, and it provides a 10-day window for delivery of a modified written early intervention notice under certain specific situations. The interim rule, which has been posted to BOL's Regulations pages for Regulation X, is effective October 19. Comments on the interim rule are due within 30 days of Federal Register publication.
The Bureau also announced a proposed rule that would amend new § 1026.41(e)(5) to adjust the timing requirement for the transition to and from modified periodic statements or coupon books in connection with a consumer's bankruptcy case, in order to alleviate unintended challenges in implementation. Comments on the proposal will be accepted for 30 days following publication in the Federal Register. Any final rule will be effective April 19, 2018.
- Interim final rule amending § 1024.39(d)(3)(iii) of Regulation X
- Proposed rule to amend § 1026.41(e)(5) if Regulation Z
UPDATE: The INTERIM FINAL RULE was published [82 FR 47953] in the Federal Register on October 16, 2017, with comments due by November 15, 2017.
UPDATE: The PROPOSED RULE will be published in the Federal Register on October 18, 2017, with a 30-day comment period ending November 17, 2017.