CFPB says it’s working to streamline mortgage-servicing rules

The Consumer Financial Protection Bureau said it will use stakeholder input to propose ways to simplify and streamline mortgage servicing rules.

Details: In a blog post, CFPB Director Rohit Chopra said the bureau will use input from a recent request for information to propose streamlining “only if it would promote greater agility on the part of mortgage servicers” to respond to future economic shocks while they meet their obligations to borrowers.

Background: The CFPB last fall requested input on potential barriers that prevent or discourage qualified borrowers from accessing refinance products, particularly in low- and moderate-income and rural areas.

ICBA Response: ICBA responded with a comment letter calling on the bureau to reduce unnecessary compliance burdens for community banks, noting that community banks work with their customers to determine appropriate loan products given their unique needs and financial circumstances

ICBA Recommendations: Specifically, ICBA encouraged the CFPB to:

• Coordinate with other regulators to reduce unnecessary compliance burdens and complexity for community banks.

• Carefully consider whether and how the CFPB should offer targeted and streamlined refinance programs and products.

• Provide more opportunities and tools to enrich borrower education.