Industry insiders say that new rules proposed for mortgage servicers are mostly in line with recent regulatory actions and agreements although they agree that there is no going back to the old system. In addition to how distressed borrowers are handled, the proposed rules would require earlier disclosure of upcoming rate and payment adjustments and changes to the way servicers deal with borrowers who have lapsed insurance coverage.
The rules are consistent with the multi-state servicer settlement and adjust some of the standards in the settlement to accommodate smaller servicers.
Said Michael Waldron, a Ballard Spahr partner and leader of the firm’s Mortgage Banking Group, “You have to look at the consent orders themselves that were entered into in April of 2011 and the ongoing efforts under those consent orders to truly get perspective on what these proposed rules mean and how they will truly be implemented.”