NEWARK, N.J. – An article in the Star-Ledger today notes that the Consumer Financial Protection Bureau (CFPB) is set to release it final rules today to require mortgage servicers to simplify billing statements, provide additional notice of rate changes to borrowers, and help ensure that consumers know all of their options to prevent foreclosures.
The article, titled “Federal Consumer Watchdog to Issue Rules to Protect Against Foreclosures”, explains that the rule will help prevent foreclosure by stopping mortgage servicers from proceeding toward foreclosure without working more closely with the borrower and the loan originator.
CFPB Richard Cordray stated the guidelines will establish national standards, however, the CFPB “made some exemptions for community banks and credit unions that handle fewer than 5,000 mortgage loans”, says the article.
“We’re not certain how it will impact credit unions,” Jared Ihraig, Senior Assistant General Counsel at CUNA told the Star-Ledger. “There may be additional staffing requirements. We will be evaluating it very carefully.”
But he said not requiring the smaller institutions to send members separate banking and loan statements “should assist credit unions in saving money they can put toward helping people.”
The full article is available here.