CFPB’s Proposed Mortgage Servicing Rule Amendments – Understanding the Impact on Loss Mitigation, Foreclosure, and Language Access

The CFPB recently issued its long-awaited proposed rule amending the mortgage servicing rules under Regulation X, with a focus on loss mitigation procedures and foreclosure protections. These changes were previewed by the CFPB as a means to streamline, and add flexibility to, the loss mitigation process, in light of the industry’s successful efforts during the COVID-19 pandemic. However, in doing so, the CFPB’s proposal also significantly expands borrower protections during the loss mitigation process, creates extensive new operational challenges for servicers, and leaves many concerning questions based on the proposed language. 

The proposal also includes extensive new language access requirements, including requirements to provide translated versions of certain communications, and to make various translation and interpretation services available upon request. The proposed rule also amends aspects of the early intervention requirements, and error resolution requirements.  

On this webinar, Ballard Spahr lawyers will discuss the regulatory and litigation impacts of the proposed rule, including:

• Detailed analysis of the proposed changes

• Potential approaches to loss mitigation, under the revised scheme

• Practical impacts on loss mitigation and foreclosure from an operational, cost, and liability standpoint

• Specific pain points under the proposed language, and topics requiring clarification, refinement, or pushback 

• Language access requirements, and the impact from an operational, cost, and liability standpoint

• Implications of the rulemaking in a post-Chevron world

• Topics on which the CFPB has specifically requested comment