Mortgage Servicing Rules Under The Real Estate Settlement Procedures Act

New RESPA rule requires immediate loan servicing changes. Learn how to adapt your policies and procedures by August 31.

On June 28, the Consumer Financial Protection Bureau issued a final rule dictating “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X.”

You need to make changes to your loan servicing protocols to assist borrowers who have been financially affected by the pandemic. Digesting the 208-page rule and incorporating the dozens of required policy and procedural modifications in your institution by the August 31 deadline will be no small feat.

• What error resolution procedures and requests for information does the rule impose?
• What are the requirements for force-placed hazard insurance?
• How should you comply with early intervention requirements?
• What continuity of contact provisions must you follow?
• What additional borrower protections have been added to the loss mitigation requirements?
• What are the servicing requirements for successors in interest?