Mortgage Servicing Compliance, Including Guidance During COVID-19 Times

In a sense, servicing consumer mortgage loans has always been a bit of the "wild west" of compliance, meaning there was little in the way of rules and regulations. But thanks to the COVID-19 events of 2020, including the difficulties so many borrowers are having with their loans, the flood of accommodation requests, and the unfortunate number of delinquencies and defaults, servicing, accommodations, and default management has become critically important. As well, after the financial crisis over a decade ago and resulting exposure of unsavory practices, rules were put into place by the Dodd-Frank Act. The CFPB has also issued additional regulations since that time that further the requirements mortgage servicers must follow. As well, the CFPB plans on issuing a final rule on debt collection standards soon.

The rules around servicing include many "standard" requirements dealing with periodic statements and escrows, for example, but many of the requirements focus on how servicers deal with distressed borrowers - from mandating "early intervention" and processes around loss mitigation applications, to foreclosure timing rules. And within the last six months, the agencies have issued many proclamations and allowances for dealing with the many issues the pandemic has created.

We'll focus on these critical areas as well as the rules, and provide practical advice on how to meet both regulatory and borrower expectations.

Covered Topics

  • 2020 guidance from the agencies around servicing loans and making accommodations during COVID-19
  • Requirements from the CFPB, including servicing transfer rules, notices, and successors in interest
  • Developments in Debt Collection, including the CFPB’s new Regulation F proposal to implement the FDCPA
  • Clarifications of foreclosure protections
  • Treatment of borrowers in bankruptcy
  • Fair Debt Collection Practices Act (FDCPA) rules, including UDAP/UDAAP implications
  • Periodic statement (Regulation Z/Truth in Lending) and similar disclosure requirements, including exemptions
  • ARM (Adjustable Rate Mortgage) change notification requirements
  • Dealing with partial payments
  • Providing payoff statements
  • Force-placed insurance requirements
  • Reasonable servicing policy and procedure requirements
  • Early intervention rules
  • Loss mitigation options, applications, and processes
  • Servicing file requirement
  • Foreclosure rules, including timing and notices

Who Should Attend?

This interactive session will provide an in-depth understanding of these rules, which is imperative for anyone performing duties in consumer mortgage servicing areas of your financial institution. These individuals include loss mitigation specialists, collectors, supervisors, auditors, special asset staff, compliance officers, auditors, counsel, and others working in similar positions.