MBA, ABA Respond to CFPB’s Mortgage Servicing Proposal

The American Bankers Association and Mortgage Bankers Association issued the following joint statement in response to the Consumer Financial Protection Bureau’s proposed rule, Streamlining Mortgage Servicing for Borrowers Experiencing Payment Difficulties; Regulation X:

“We have long advocated for modernizing the loss mitigation framework under Regulation X and appreciate the Bureau’s efforts to simplify and streamline the process. Servicers have helped more than 8 million families stay in their homes since the beginning of the COVID-19 pandemic while adapting to new and rapidly changing loss mitigation programs implemented by government agencies. Servicing practices to help struggling homeowners have evolved since 2014, and we support updates that inform borrowers of all their options in a clear and timely manner, remove unnecessary barriers, better prepare for future national emergencies, and ultimately facilitate seamless resolutions for those who need it.

“The Bureau’s proposal represents a substantial overhaul of the current framework, and we hope they will take into careful consideration the recommendations and feedback from our members who are serving millions of borrowers every day. We look forward to reviewing the specific details of the proposal – including the items pertaining to Limited English Proficiency – to ensure any updated framework is operationally feasible and does not negatively affect consumers.”