Summary: CFPB Notice of Assessment of the 2013 RESPA Servicing Rule and Request for Comment

CFPB 12 CFR Part 1024
Notice of Assessment of 2013 RESPA Servicing Rule and Request for Comment

Prepared by the NASCUS Legislative & Regulatory Affairs Department
May 2017

The CFPB is conducting an assessment of the Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act as amended prior to January 10, 2014.  The Bureau is requesting comment on its plans for assessing this rule. The Bureau is also seeking recommendations/information that may be useful in conducting the planned assessment.

Comments must be received by July 10, 2017.  The Notice of Assessment/Request for Comment can be found here

Rule Assessment

Section 1022(d) of the Dodd Frank Act requires the Bureau to conduct an assessment of each significant rule or order adopted by the Bureau under Federal consumer financial law.  The Bureau is required to publish a report of the assessment not later than five years after the effective date of such rule or order.  The assessment must address, among other things, the rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd Frank Act and the specific goals of the rule as stated by the Bureau.  Before publishing the report, the Bureau must seeking public comments on recommendations for modifying, expanding or eliminating the significant rule or order. 

Assessments are for informational purposes only and are not a part of any formal/informal rulemaking proceeding.  The Bureau does not expect to respond to each comment received in the assessment report.  Also, the Bureau does not anticipate that the assessment report will include specific proposals by the Bureau to modify any rules, although the findings made will help inform the Bureau’s thinking as to whether to consider additional rulemaking in the future.  The Bureau plans to issue the assessment report no later than January 10, 2019.

RESPA Servicing Rule

The 2013 RESPA Servicing Rule addressed six major topics:

  • Force-placed insurance
  • Error resolution and information requests
  • General servicing policies
  • Early intervention with delinquent borrowers
  • Continuity of contact with delinquent borrowers
  • Loss mitigation procedures

Most of these requirements do not apply to small servicers, defined as servicers that service 5,000 mortgage loans or fewer and only service mortgage loans the servicer or affiliate owns or originated.

Comment Request

The Bureau invites the public to submit information/comments on the following:

  • The feasibility and effectiveness of the assessment plan, the objectives of the 2013 RESPA Servicing Rule and the outcomes, metrics, baselines and analytical methods for assessing the effectiveness of the rule;
  • Data and other factual information that may be useful for executing the Bureau’s assessment plan;
  • Recommendations to improve the assessment plan, as well as data, other factual information, and sources of data that would be useful and available to execute any recommended improvements to the assessment plan;
  • Data and other factual information about the benefits and costs of the rule for consumers, servicers and others in the mortgage industry; and about the effects of the rule on transparency, efficiency, access and innovation in the mortgage market;
  • Data and other factual information about the rule’s effectiveness in meeting the purposes and objectives of Title X of Dodd-Frank; and
  • Recommendations for modifying, expanding or eliminating the 2013 RESPA Servicing Rule.