CFPB to Assess RESPA Mortgage Servicing Rule Effectiveness

The Consumer Financial Protection Bureau (CFPB) is planning to assess the effectiveness of the Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule. The rule, introduced in January 2013 and which took effect in January 2014, was designed to assist consumers who were behind on mortgage payments.

Among other things, the RESPA mortgage servicing rule requires servicers to follow certain procedures related to loss mitigation applications and communications with borrowers. Servicers must give, in writing, notices of error within five days, and investigate and respond to the borrowers within 30 days.

Additionally, the RESPA mortgage servicing rule called for greater transparency between the servicer and the borrower. It required clear monthly mortgage statements, early warning before adjusting interst rates, and gave options to avoid fore-placed insurance.

“For many borrowers, dealing with mortgage servicers has meant unwelcome surprises and constantly getting the runaround. In too many cases, it has led to unnecessary foreclosures,” said CFPB Director Richard Cordray of the rule in 2013. “Our rules ensure fair treatment for all borrowers and establish strong protections for those struggling to save their homes.”

Dodd-Frank requires the CFPB to review their rules five years after they take effect, and this includes RESPA. Currently, the Bureau is seeking comment from consumers, consumer advocates, housing counselors, mortgage loan servicers, industry representatives, and the general public regarding the rule, and will issue a report of their assessment by January 2019.

The assessment will give the CFPB better understanding of the costs and benefits of the RESPA mortgage servicing rule, and, according to the Bureau, will provide the public with a better understanding of the mortgage servicing market.

The CFPB’s Information Request can be found here.

7 Responses

  1. Great article – please check out my webite it’s all about RESPA against servicer SPS.sorry about repost did this one from my computer and not my smart phone.

  2. Great article – please check out my webite it’s all about RESPA against servicer SPS.


  3. The CFPB hyjacked and consealed evidence of all the mortgage fraud, they are not honorable and the ones doing the intake are datamining attorneys who actually work for the banks.
    what a joke! The CFPB needs to be shut down and the damn District Attorneys need to do their jobs of stopping fraudulent recordings in the local land records stealing homes! The Sheriffs and Police need to take the CRIMINAL complaints all homeowners seek to have them take, but they call them “civil” and refuse to help, BUT the leo should be giving all to the DA and the DA prosecuting. Get rid of all the ABC agencies that create an air of hope but are really just part of the crimes. We have enforcement for criminals to be prosecuted, let’s see it used!! CFPB is just an intake and have zero prosecutorial effect, it is all a ruse and it is time to end it all. RETURN STOLEN HOMES AND PAY DAMAGES TO HOMEOWNERS! Law of voids!

  4. I have filed a CFPB complaint against Wells Fargo for illegal servicing practices and denying a modification TO PRODUCE PROFIT In foreclosure. Wells Fargo responded to the complaint with a lot of excuses and lies about why they denied a modification. They even lied about my gross income and said they were allowed to increase it 25 percent because I don’t pay taxes in child support. Wow. My federal tax was $750 for the year and they increased my income $600 a month with their tricky math which I don’t believe is legal. It was the last straw for me. I saw no reason to continue to file complaints with the CFPB if the criminal gets to investigate their illegal actions of predatory modifications where interest rates are kept high, terms are extended out to 40 years and loan amounts are inflated with bank fees that Wells Fargo is now agreeing to settle with a $25milion settlement because it’s very profitable to keep up with this kind of illegal behavior.

  5. The CFPB is a complete joke in my humble opinion. They have totally ignored me and thousands of others and it is time to shut them down, along with FHFA, GSE, Fannie Mae and Freddie Mac.
    Their whole rackettering scam seems to refiet back to the past administration and how much money as been taken from all us American property owners who got caught in the middle.
    California is making great progress on all this total BS and all we can do is hope that all states will follow and take action like the great state of Montana did back in late 2014. Semper Fi

  6. Wells Fargo gets an F*, there are by far the worst services, only taking the sides of the Investors and leading the homeowners down the path to foreclosure. They do not allow homeowners with equity to try a Loan Modification do homeowners who put more than 20% down are penalized and forced to pay high interest rates year after year.
    Investor guidelines are hidden from them, so you cannot negotiate with them. You are stuck with a silent partner that you did not sign up for. Wells Fargo continues to use/make false documents, they are ruthless and then they feel that none of their tactics have had any affect on you. They can violate you, break the rules, unlawfully foreclose and this doesn’t affect you? Too bad it cost you a BK and your credit to save your house, too bad it cost you thousands of dollars to have the sale rescinded, apparently I suffered nothing, or $5000 which I condition nothing.
    $5000 is what they offered for breaking all the rules, ruining my credit etc., selling my house!
    They are pathetic and should be fined millions. for what they have put me through.
    I had the “new owners ” serve me 3 day notice to move at Christmas and I am single, a grandmother and 67! Wells Fargo says I did not suffer! I nearly had a heart attack! I didn’t decorate for Christmas, what would be the point?
    All the time Wells Fargo knew they were in the wrong they continued they even gave the new owner my Deed of Trust, all cleaned up, removed the Robo signer, added a new name, initals, etc, This apparently did not affect me.
    They should be tarred and feathered and all their bonuses given to people like who have suffered.

  7. Reblogged this on Mario Kenny.

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