In an effort to ease servicers' concerns about communicating with struggling or bankrupt borrowers who invoke certain legal protections, the Consumer Financial Protection Bureau finalized clarifications to its mortgage servicing rules.
The notice released Tuesday clarified ways for servicers to work with a borrower in bankruptcy, how to contact a struggling borrower during a required early intervention period, and how to contact the family of a deceased borrower.
"As servicing implementation enters its final phases, we heard from many sources that it was important to address these remaining issues to ensure a smooth transition and provide certainty to the market," said CFPB Director Richard Cordray, in the press release. "When mortgage servicers better understand the rules they have to follow, that is better for consumers."
The mortgage servicing rules are among a series of regulations that take effect Jan. 10.
For the full piece see "CFPB Eases Mortgage Servicing Rules" (may require subscription).