Alerts focus on HMDA reporting, mortgage servicing/debt collection rules

Jan. 24, 2017 -- Compliance with Regulation C, the Home Mortgage Disclosure Act (HMDA) reporting, and mortgage servicing and debt collection rules, are the subjects of two “regulatory alerts” issued by NCUA this month.

In 17-RA-01, NCUA notes that CFPB issued a final rule last summer amending certain mortgage servicing rules the consumer bureau promulgated in 2013. The alert also notes that CFPB issued an interpretive rule, which functions as an advisory opinion, on the Fair Debt Collections Practices Act (FDCPA), providing safe harbors from FDCPA liability.

The final rule, NCUA stated, applies to credit unions that service first-lien mortgage loans retained in portfolio as the originator -- or sold in the secondary market -- but retained servicing rights. The other rule clarifies the interaction of FDCPA and certain mortgage servicing rules under Regulations X and Z (Real Estate Settlement Procedures Act and the Truth in Lending Act, and their implementing regulations, respectively).

The alert also notes that most provisions of the final rule on mortgage servicing and the FDCPA interpretive rule are effective Oct. 19 (the exception are the “successors in interest and bankruptcy periodic statement provisions” which become effect April 19, 2018).

Additionally, the alert outlines nine “key areas” of the mortgage servicing rule, and the three safe harbors under the FDCPA Interpretive Rule

In 17-RA-02, the agency outlines reporting compliance with CFPB’s Regulation C, which implements HMDA. The alert notes that credit unions which make residential mortgage loans and meet four criteria must comply with CFPB’s Reg C – which requires the credit union to collect HMDA data association with mortgage loan applications processed this year.

“If your credit union does not meet all four criteria, you are exempt from filing HMDA data for calendar year 2017,” the alert states

The alert points out that credit unions required to collect the data must submit it to CFPB no later than March 1, 2018.

See the links below for the four criteria and complete text of both regulatory alerts.

LINKS:

17-RA-01: 2016 Mortgage Servicing Rule Fair Debt Collection Practices Act Interpretive Rule

17-RA-02: Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2017

NASCUS Summary: 17-RA-01 (members only)

NASCUS Summary: 17-RA-02 (members only)