Joint Comments to CFPB's October 23, 2013 Interim Final Rule

The American Bankers Association, the Consumer Bankers Association, and the Mortgage Bankers Association are pleased to comment on the Consumer Financial Protection Bureau’s (“CFPB” or the “Bureau”) October 23, 2013 Interim Final Rule that amends certain mortgage servicing-related provisions in Regulation X and Regulation Z as well as the corresponding Commentary to these rules (collectively, the “Servicing Rules”). As described below, the Interim Final Rule improves compliance certainty by creating certain exemptions from the Servicing Rules in situations where the Rules conflict with bankruptcy law and the Fair Debt Collection Practices Act (“FDCPA”). We appreciate the CFPB’s responsiveness to servicer concerns regarding the intersection of these requirements.
Our comments also address a subject that, while not included in the Interim Final Rule, is related to the broader issue of mortgage loan debt collection. Specifically, we are concerned that it is not operationally feasible at this time for all servicers to provide periodic statements to borrowers whose loans have been charged off. In charge-off situations, we request that CFPB not require servicers to provide periodic statements that meet all of the content and layout specifications for periodic statements, as set forth in 12 CFR 1026.41(d).

To read the full Comment Letter, download the PDF.