The Consumer Financial Protection Bureau (“CFPB”) announced on April 19 proposals to amend some of its recently issued mortgage rules. The proposed amendments would clarify provisions on the relation of Regulation X’s servicing provisions to state law under the Real Estate Settlement Procedures Act (“RESPA”), and clarify the small servicer exemption from certain mortgage servicing rules, among other proposed changes. Comments on the proposed amendments will be due within 30 days after publication in the Federal Register, which is expected shortly.
Nutter Notes: One of the CFPB’s proposals would amend the commentary to Regulation X to clarify that for purposes of preemption of state law, RESPA and Regulation X do not occupy the field of the regulation of mortgage servicers or mortgage servicing covered by RESPA or Regulation X, meaning that state laws in those areas are not necessarily preempted. The proposal would also clarify which mortgage loans may be considered in determining the availability of the small servicer exemption.