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The expanded protections afforded to successors in interest and the new requirements for credit unions under CFPB's final mortgage servicing rules were outlined in a NAFCU Compliance Blog post Monday.

Regulatory Compliance Counsel Benjamin Litchfield said CFPB's amended mortgage servicing rules provide further guidance on the types of documents that a servicer can use to confirm a potential successor in interest's identity and property ownership status. He explained that the rules "significantly expand" the protections afforded to successors in interest by redefining "borrower" in part of Regulation X and "consumer" in Regulation Z to include "confirmed successors in interest."

Litchfield said along with expanded protections for successors in interest, credit unions will also be required to "provide confirmed successors in interest with rate adjustment notices for adjustable rate mortgages, periodic statements, and to promptly credit payments" according to requirements in Regulation Z.

He also detailed the expanded number of individuals who qualify as successors in interest under Regulations X and Z in CFPB's amended rules.

To address privacy concerns raised by NAFCU with the rules, Litchfield noted that CFPB amended the error resolution and request for information provisions in Regulation X to allow credit unions to leave out certain borrower information, including location, contact information and particular personal financial information, that is provided to a potential or confirmed successor in interest.

Most of the provisions of CFPB's final rule will take effect 12 months after publication in the Federal Register. However, the provisions relating to successors in interest will take effect 18 months after publication.