Compliance Blog

Written by Ricardo Piñeres, Regulatory Compliance Counsel

CFPB Releases Mortgage Servicing Transfer Bulletin.  Last week, the CFPB released Bulletin 2014-01 that is billed as a compliance bulletin and policy guidance with regards to mortgage servicing transfers.  This bulletin replaces CFPB Bulletin 2013-01, and provides guidance for mortgage servicers.  It states that “the CFPB will be carefully reviewing servicers’ compliance with Federal consumer financial laws applicable to servicing transfers.”  Furthermore, the bulletin is the first one regarding mortgage servicing transfers released since the changes to Regulation X and Regulation Z went into place back in January.

In a press release touting the bulletin’s release, the CFPB noted that the “bulletin gives examples of some things CFPB examiners will look for when loans are transferred. In particular, CFPB examiners will carefully scrutinize transfers of loans with pending loss mitigation applications or approved trial and permanent modification plans. Examples of good practices by servicers include flagging those loans and taking special care to ensure that all relevant documents are transferred in a timely manner.”

The bulletin is divided into four main sections: (A) General Transfer-Related Policies and Procedures; (B) Applicability of Other Parts of the New Servicing Rule to Transfers; (C) Protections under Federal Consumer Financial Law; and (D) Plans for Handling Servicing Transfers.

Section A provides examples of general transfer-related policies and procedures that CFPB examiners may consider in their evaluation of servicers with regards to maintaining policies and procedures that are “reasonably designed to achieve the objectives of facilitating the transfer of information during mortgage servicing transfers and of properly evaluating loss mitigation applications.”  The bulletin states that the examples in Section A are not intended to be an exhaustive list of policies and procedures, and that “in future examinations CFPB examiners will consider a servicer’s transfer-related policies and procedures as a whole in determining whether they are reasonably designed to achieve these objectives.”

Section B discusses how transfers interact with other portions of the servicing rule.  Its discussion includes portions regarding:

• Error resolution procedures;
• Requests for information;
• Force-placed insurance;
• Early intervention;
• Continuity of contact; and
• Loss mitigation.

Section C gives a brief listing of other federal consumer financial laws applicable to servicing transfers and explains potential consequences if servicers are not fulfilling their obligations under the law.  Lastly, Section D discusses how, in certain circumstances, the CFPB may “require servicers engaged in significant servicing transfers to prepare and submit written plans to the CFPB detailing how they will manage the associated consumer risks.”

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Free Kick.  My in-laws were visiting this past weekend, and in order to spend quality time with them, I drafted this blog post before leaving the office on Friday.  Therefore, while I would have loved to have given my take on the EPL games from this past weekend, I will instead have to focus on the big news from Friday – the Mario Balotelli move to Liverpool.

Having lost Luis Suarez this summer, I understand the reflexive need to try and fill the void with a “superstar” goal scorer.  Rickie Lambert certainly is an inadequate signing that did little to make up for the loss of Suarez.  But Balotelli, really?  Sure, he has raw talent, but he is also temperamental, inconsistent diva that has shown a penchant for disappearing for long stretches of games and seasons.  If they can control Balotelli’s self-imploding impulses, then this will be a brilliant coup for Brendan Rodgers and the Liverpool brass.  That being said, neither Manchester City nor AC Milan could effectively do that.  Therefore, while Balotelli may pay early dividends for Liverpool, I have no doubt that that he will devolve into a clubhouse cancer and inconsistent performer on the pitch by the end of the season.

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Webcast.  Your Credit Union’s Website: Keys to a Successful Compliance Review.  Your credit union website is subject to the same compliance requirements as printed material—but the parameters don’t always seem clear.  In NAFCU’s informative webcast, Steven Van Beek will help ensure you can pass a website compliance review by discussing the key disclosures that must appear on your website, and when.  You’ll also receive best practices, learn to utilize the One Click Rule for disclosures, and more.