On Friday, the Consumer Financial Protection Bureau finalized amendments and clarifications to the mortgage rules it finalized in January 2013 (see our June 25, 2013, blog post for more information). Among other things, the modifications:

  • Clarify what servicer activities are prohibited in the first 120 days of delinquency
  • Outline procedures for obtaining follow-up information on loss-mitigation applications
  • Facilitate servicers' offering of short-term forbearance plans
  • Clarify best practices for informing borrowers about the address for error resolution documents
  • Facilitate lending in rural or underserved areas
  • Make clarifications about financing of credit insurance premiums
  • Clarify the definition of a loan originator
  • Clarify the points and fees thresholds and loan originator compensation rules
  • Revise effective dates of many loan originator compensation rule provisions

Last Wednesday, CFPB Director Richard Cordray addressed the American Mortgage Conference in Raleigh, North Carolina. Cordray discussed these recently finalized mortgage rules, noting that the bureau's oversight of the rules will "be sensitive to the progress made by those lenders and servicers who have been squarely focused on making good-faith efforts to come into substantial compliance on time." 

For more, read Cordray's remarks and the full press release.