CFPB Issues Amendments to Mortgage Servicing Rule

On Wednesday, October 4, 2017, the CFPB released an interim final rule amending the Mortgage Servicing Rule, which allows for more flexibility around the timing of early intervention notices sent to borrowers who have invoked their cease communication rights under the FDCPA. Under the 2016 Mortgage Servicing Final Rule, a servicer subject to the FDCPA with respect to a borrower’s loan must provide a modified written early intervention notice to a borrower on a periodic basis, but may not do so more than once every 180 days. Under the interim final rule, lenders are permitted a 10-day window at the end of any 180-day period to send the early intervention notice, clearing up issues servicers raised about having to send the notice on the 180th day exactly. The Bureau also released a proposed rule amending the Mortgage Servicing Rule, which will provide a single-statement exemption for the next periodic statement or coupon book a servicer would otherwise have to provide, regardless of when in the billing cycle a triggering event occurs. The rule also adds new comments to clarify the operation of the proposed single-statement exemption.