On August 19, 2014, the CFPB issued the above referenced bulletin (click here) updating and replacing similar guidance by the CFPB in Bulletin 2013-01 issued prior to RESPA’s new servicing rule that took effect on January 10, 2014 (12 CFR §1024.30, et seq.). Bulletin 2014-01 provides updated guidance to residential mortgage servicers and subservicers to address potential risks to consumers that may arise in connection with transfers of servicing, particularly when the transfers involve loans with pending loss mitigation applications or approved trial and permanent modification plans. A related CFPB press release states, “[t]he bulletin includes information on how mortgage servicers should pay special attention to new rules protecting consumers applying for loss mitigation help or trial modifications [,]” quoting CFPB Director Richard Cordray that the CFPB “will not tolerate consumers getting the runaround when mortgage servicers transfer loans.” While we strongly recommend that you read Bulletin 2014-01in full, this memorandum sets out redacted guidance from the bulletin, taken from the following four bulletin sections: A. General Transfer-Related Policies and Procedures The new servicing rule requires servicers to maintain policies and procedures that are reasonably designed to facilitate the transfer of information during mortgage servicing transfers. This section of the bulletin provides non-exhaustive examples of general transfer-related policies and procedures CFBP examiners may consider in evaluating whether servicers have satisfied this requirement:
