CFPB Mortgage Loan Servicing Regulations Became Effective January 10, 2014 -Monday, February 3, 2014
Introduction In 2013, the Consumer Financial Protection Bureau (CFPB) exercised its discretionary rulemaking authority and published new loan servicing and loss mitigation regulations. The regulations are effective January 10, 2014, and mandate that loan servicers (1) initiate early intervention for delinquent borrowers on covered residential mortgage loans, (2) maintain continuity of contact with such borrowers, and (3) comply with loss mitigation procedures. Codified in 12 CFR §§1024.39–1024.41, their goal is to reduce foreclosures by using realistic alternatives. Small servicers and servicers of certain reverse mortgages need not comply. The regulations are detailed in California Mortgages, Deeds of Trust, and Foreclosure Litigation §10.8H (4th ed Cal CEB).