CFPB issues Request for Information regarding RESPA Servicing Rule

CFPB RESPA request for informationOn May 4, 2017, the CFPB announced that it intends to conduct an assessment of the 2013 RESPA Mortgage Servicing Rules. The Bureau issued a proposed plan to assess the effectiveness of RESPA’s mortgage servicing rule, which was issued in January 2013 and took effect on January 10, 2014.

According to the CFPB, the assessment will focus on how well the 2013 RESPA mortgage servicing rule has met its consumer protection objectives of (1) responding to borrower requests and complaints in a timely manner; (2) maintaining and providing accurate information; (3) helping borrowers avoid unwarranted or unnecessary costs and fees; and (4) facilitating review for foreclosure avoidance options.

The CFPB is seeking public comment on its assessment plans and for feedback and recommendations that the Bureau could use or consider when conducting the planned assessment. In particular, the CFPB is inviting comments on a variety of issues related to the assessment, including the feasibility and effectiveness of the assessment plan and recommendations for modifying, expanding, or eliminating the 2013 RESPA mortgage servicing rule.

Although the report is unlikely to offer specific proposals to modify RESPA’s mortgage servicing rule, the CFPB explained that the report will “help to inform the Bureau’s thinking as to whether to consider commencing a rulemaking proceeding in the future.”

Under section 1022(a) of the Dodd-Frank Act, the CFPB is required to assess all of its rules five years after their effective date to ensure that they are meeting the purposes and objectives of Dodd-Frank, as well as specific goals of the subject rule. In March, CFPB officials indicated that the Bureau intended to initiate its review of major mortgage regulations.

Comments must be received 60 days after the CFPB’s notice is published in the Federal Register. The Bureau states in its proposed plan that it “plans to issue an assessment report no later than January 10, 2019.”

Tags: CFPB, CFPB Rulemaking, RESPA

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