CFPB Finalizes Changes to Servicing Rule
March 9, 2018
The Consumer Financial Protection Bureau yesterday issued a final rule related to the timing for servicers sending periodic statements to borrowers in bankruptcy. The rule takes effect on April 19, 2018.
Currently, servicers are required to immediately transition from sending standard statements to sending modified statements when consumers enter into bankruptcy. The final rule replaces the single-billing-cycle exemption with a single-statement exemption, granting servicers more leeway when making this transition. While ABA acknowledged that the single statement exemption addresses some of the issues created by the CFPB’s 2016 final servicing rules, the association remains concerned that servicers still face a number of operational compliance challenges. Read the final rule.