CFPB Updates Mortgage Research Guidelines

On January 18, the CFPB released a new version of his Mortgage Examination Procedure, detailing the types of information that auditors should collect when investigating whether service providers are complying with applicable laws and identifying potential risks of customer. The test procedures were as follows updated in June 2016, including forbearance and other tools, including the simplification of loss reduction options used by mortgage servicers for customers affected by the Covid-19 pandemic. The Agency stated in its announcement that, “if these loss reduction options are available for borrowers who are facing difficulties due to the COVID-19 national emergency, they may also be available below the temporary suspension of (the agency’s disease. -related mortgage laws) to borrowers who are not facing the adverse effects of COVID-19.” It is expected that servicers will continue to use all the tools they are using, including, when available, flexible deferrals and modifications to meet the provisions of these diseases related to mortgage laws as they try to keep people shop in their homes. The agency said the test update also includes areas of focus from the agency. Award of Merit items received in connection with, among other things, (i) fees such as telephone subscription fees that the servicer pays to borrowers; and (ii) misrepresentations by service providers regarding retention options. The test update process also includes a list of bulletins, guidelines, and temporary changes for tests to discuss as they evaluate service provider compliance. to federal financial laws. Researchers are also advised to request information on how staff can communicate with borrowers about homeowner assistance programs, which can help. for buyers to avoid foreclosure, when mortgage brokers work with state finance agencies and HUD-accredited housing counselors to help borrowers through the application process of HAF.

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