MBANow: Justin Wiseman on New CFPB Successor in Interest Servicing Requirements
The Mortgage Bankers Association released a new MBANow video on YouTube featuring MBA Director of Loan Administration Justin Wiseman, who discusses a challenging element of 2017 updates to mortgage servicing requirements–handling both potential and confirmed successors in interest.
The video can be accessed at https://www.youtube.com/watch?v=GAyofqfrbf0&feature=em-uploademail.
Successors in interest is a complex provision of the Consumer Financial Protection Bureau’s new servicing requirements. “Essentially what it governs is people who have an interest in the property, and thereby, in the mortgage loan securing the property, due to some personal status vis-à-vis the borrower,” Wiseman said. “They could be heirs through a death; they could be transfer due to a divorce or some other transfer of property that gives the successor a relationship with the loan servicer.”
Wiseman noted a complicated aspect of the successor in interest provision is that successorship is governed by state law. “So essentially what constitutes reasonable policies and procedures differ by what you would require in any particular state.”
MBA and the MBA Education Compliance Essentials program, in collaboration with leading legal experts, have created state-by-state reports to help servicers understand documents that are required to verify a successor in interest’s status in each state.
MBA is offering tiered pricing to minimize costs of compliance to members. Reports will be available for each of the 50 states plus Washington, D.C. and Puerto Rico. MBA members can purchase all the reports or only the states needed; MBA will deliver these reports electronically.
Reports will be released over the next few months; however, they are available for pre-order. To place pre-orders or to ask questions, email David Upbin at dupbin@mba.org. For more information visit http://mba.org/sii.
“The Compliance Essentials package will be helpful,” Wiseman said. “There are a lot of system changes and implementation that needs to happen before this provision becomes effective in April 2018, so I would encourage folks to be involved with the MBA Loan Administration Committee to inform us of implantation issues as they arise or any other challenges that may arise ahead of the implementation so that we can continue to work to assist our members.”
Other videos in the MBANow series can be viewed at the MBA YouTube channel, https://www.youtube.com/watch?v=Swk2VUJeZFI&feature=em-uploademail. The videos are also available on the MBA Insights landing page, https://www.mba.org/publications/insights/insights-publication##SubscriberID####RND##&PageID=21109.
