CFPB Giving Servicers “More Latitude” in Dealing with Borrowers in Bankruptcy - ABI

Mortgage servicers are about to have “more latitude” when it comes to dealing with borrowers entering or exiting bankruptcy, the Consumer Financial Protection Bureau announced yesterday, reported. The CFPB announced a final rule relating to certain borrowers facing bankruptcy. The rule was initially released by the CFPB back in October, but now the bureau is finalizing the rule. According to the CFPB, the final rule is the same as the previously released version. In an announcement, the CFPB explained that its 2016 mortgage servicing rules requires servicers to send modified periodic statements or coupon books to certain consumers in bankruptcy, beginning April 19, 2018. The rule also dealt with the timing for servicers to move from providing or ceasing to provide modified periodic statements to consumers entering or exiting bankruptcy.

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