CFPB Bulletin 2020–02—Compliance Bulletin and Policy Guidance: Handling of Information and Documents During Mortgage Servicing Transfers

In Client and Friends Memos by BMG Memorandum

In the May 5, 2020, Federal Register (85 FR 25281), the Bureau of Consumer Financial Protection (Bureau) issued Bulletin 2020-02 to provide guidance to residential mortgage servicers and subservicers (servicers) on the transfer of residential mortgage loans. Bulletin 2020-02 covers mortgage servicing transfer-related policies and procedures and the delivery of loan information and documents for ensuring accuracy “that are reasonably designed to achieve the objectives” of Regulation X servicing transfer requirements. (See §1024.38.) In addition, Bulletin 2020-02 advises that State laws and regulations may impose additional requirements on servicers.

Bulletin 2020-02 is applicable on May 1, 2020.

In Bulletin 2020-02, the Bureau provides the following conditional and limited relief for good-faith efforts by servicers during the coronavirus pandemic:

Taking into consideration the coronavirus pandemic that led to the President’s declaration of a national emergency on March 13, 2020 (National Emergency), and the economic and social dislocations caused by the pandemic, for the duration of the National Emergency and for 120 days thereafter, if a servicing transfer is requested or required by a Federal regulator or by the security issuer of ‘‘Government Loans’’ (as defined in the CARES Act), the Bureau intends, for activity during this period, to consider the challenges that entities may face as a result, including operational and time constraints related to the transfer, and to be sensitive to good-faith efforts demonstrably designed to transfer the servicing without adverse impact to consumers. The Bureau intends to focus supervisory feedback for institutions, if needed, on identifying issues, correcting deficiencies, and ensuring appropriate remediation to consumers.

Full Memorandum