GSEs Update Servicing Guidelines to Prepare for CFPB Rules fhacondosapproval This is a basic description of the changes that Freddie and Fannie are going to make to comply the Consumer Financial Protection Bureau in January 2014. For a more detailed look at this subject please read the article below. As the industry prepares to comply with the January implementation of new rules from the Consumer Financial Protection Bureau (CFPB), Fannie Mae and Freddie Mac updated their servicing guides to ensure compliance. In keeping with the Servicing Alignment Initiative, the two agencies worked with their regulator, the Federal Housing Finance Agency to ensure their guidelines are in sync. The new guidelines address loss mitigation, foreclosure procedures, and the borrower appeal process. Under the new rules a servicer is prohibited from mentioning foreclosure earlier than 121 days into a delinquency situation. At the 121-day mark, a servicer has five business days to refer a loan to foreclosure. At that point, the servicer must take legal action to foreclose. However, if a borrower submits a “First Complete Borrower Response Package” more than 37 days before the scheduled foreclosure sale, the servicer must delay legal action. Additionally, a servicer must always provide written receipt of a borrower response package within five days of receiving the package. The GSEs will allow servicers up to 15 days to complete pre-referrals for foreclosures. “Servicers must now perform a pre-referral to foreclosure review within 15 days prior to the date by which the servicer is required to refer the mortgage loan to foreclosure,” Fannie Mae said in its announcement. In cases of natural disaster, borrowers must complete a borrower response package in order to apply for forbearance longer than six months. To read the complete article please use the link below. dsnews/articles/gses-update-servicing-guidelines-to-prepare-for-cfpb-rules-2013-10-14
Posted on: Wed, 16 Oct 2013 17:28:15 +0000