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WBK Industry News - Federal Regulatory Developments

CFPB Makes Technical Corrections to Mortgage Servicing Final Rule

The CFPB issued technical corrections to the 2016 Mortgage Servicing Final Rule addressing: (1) errors regarding effective dates of amendments to Regulation Z, (2) an omission in the authority citation for Regulation Z, and (3) a typo in the amendments to Regulation X. The corrections are effective October 19, 2017.

The CFPB corrected certain language in the 2016 Mortgage Servicing Final Rule to clarify that the effective date for certain Regulation Z provisions related to periodic statements is April 19, 2018.  First, the CFPB corrected the effective date stated in the amendatory instruction for comment 41(c)-5 in Regulation Z, which involves servicers’ ability to remove language from sample periodic statement forms that could suggest liability under the mortgage loan agreement if such language is not applicable.  Second, the CFPB corrected the effective date of the sample periodic statement forms that servicers may use for consumers in bankruptcy to ensure compliance with Regulation Z § 1026.41.  Third, the CFPB corrected the effective date of the commentary to Regulation Z § 1026.41(e) and (f), relating to the bankruptcy periodic statement exemption and modified statements.  These corrections do not change the effective date applicable to these provisions but merely revise the relevant language to reflect the correct effective date.

The CFPB also corrected an omission in the authority citation of the Final Rule, where 12 U.S.C. 3353 should be included for part 1026 of Regulation Z.

Lastly, the CFPB corrected a clause amending Regulation X, which contained a typographical error.  The CFPB stated that the word “contact” in the Model Clause MS-4(D) of the Final Rule should be replaced with “contract” so as to read, “We have a right to invoke foreclosure based on the terms of your mortgage contract.”

The full text of the correction can be found here.