Proposed Rule Summary

CFPB 12 CFR Part 1026
Amendments to the 2013 Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)

 

Prepared by NASCUS Legislative and Regulatory Affairs Department
April 2016

The Consumer Financial Protection Bureau (CFPB) is reopening the comment period to solicit  comments on a particular aspect of its proposed amendments to certain mortgage servicing  provisions under Regulation X and Regulation Z.  Among other things, the proposal addressed  requiring servicers to provide modified statements under Regulation Z to consumers who have filed for bankruptcy (subject to certain exceptions).  The original comment period for the  proposed rule closed on March 16, 2015. The Bureau conducted consumer testing on the periodic  statement forms for consumers in bankruptcy after the close of the comment period.  

The Bureau will accept comments until May 26, 2016.  The notice regarding the reopened  comment period can be found here and the report summarizing consumer testing samples of the periodic statement forms for consumers in bankruptcy can be found here.

Summary

  • Under the proposed rule issued on December 15, 2014, amendments to Section 1026.41 of Regulation Z would require servicers to provide modified periodic statements to consumers who have filed for bankruptcy (subject to exceptions).
  • The December 2014 proposal also provided sample periodic statement forms and noted that the Bureau would be conducting consumer testing of sample periodic statement forms that servicers could use for consumers in bankruptcy to comply with the proposed amendments to Section 1026.41.
  • The Bureau conducted the consumer testing on the forms after the close of the original comment period and is now seeking comment specifically on the report summarizing consumer feedback on the forms. 
  • The Bureau is not soliciting comment on the other aspects of the proposed rule, including the merits of the proposal to require periodic statements for consumers in bankruptcy.