2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules
The CFPB is amending Regulation X, which implements the Real Estate Settlement Procedures Act of 1974, and implementing a commentary that sets forth an official interpretation to the regulation. The CFPB is also amending Regulation Z, which implements the Truth in Lending Act and the official interpretation to the regulation, which interprets the requirements of Regulation Z. These final rules implement provisions of the Dodd-Frank Act regarding mortgage loan servicing.
Specifically, the Regulation X final rule implements Dodd-Frank Act sections addressing servicers’ obligations to correct errors asserted by mortgage loan borrowers; to provide certain information requested by such borrowers; and to provide protections to such borrowers in connection with force-placed insurance. Additionally, this final rule addresses servicers’ obligations to establish reasonable policies and procedures to achieve certain delineated objectives; to provide information about mortgage loss mitigation options to delinquent borrowers; to establish policies and procedures for providing delinquent borrowers with continuity of contact with servicer personnel capable of performing certain functions; and to evaluate borrowers’ applications for available loss mitigation options. Further, this final rule modifies and streamlines certain existing servicing-related provisions of Regulation X.
The Regulation Z final rule implements Dodd-Frank Act sections addressing initial rate adjustment notices for adjustable-rate mortgages, periodic statements for residential mortgage loans, prompt crediting of mortgage payments, and responses to requests for payoff amounts. This final rule also amends current rules governing the scope, timing, content, and format of disclosures to consumers regarding the interest rate adjustments of their variable-rate transactions.
This page also contains summaries and other resources to help you understand the rules and their implications.
Contents
The rules
Effective dates
These rules are effective January 10, 2014.
Breakdown of the documents’ contents
Mortgage servicing under the Real Estate Settlement Procedures Act (Regulation X)
This document contains the following parts:
- Preamble summarizing why we are issuing the rule, our legal authority, reasoning behind the rule, responses to comments, and analysis of the benefits, costs, and impacts of the rule
- Regulatory text, which, when effective, will amend Regulation X and can be found on page 646 of the full document
- Official interpretations of the rule, which can be found on page 705 of the full document
We issued the document containing this final rule on January 17, 2013. View the full document as issued.
The Office of the Federal Register published this document on February 14, 2013. View the document as published in the Federal Register.
Mortgage servicing under the Truth in Lending Act (Regulation Z)
This document contains the following parts:
- Preamble summarizing why we are issuing the rule, our legal authority, reasoning behind the rule, responses to comments, and analysis of the benefits, costs, and impacts of the rule
- Regulatory text, which, when effective, will amend Regulation Z and can be found on page 376 of the full document
- Official interpretations of the rule, which can be found on page 403 of the full document
We issued the document containing this final rule on January 17, 2013. View the full document as issued.
The Office of the Federal Register published this document on February 14, 2013. View the document as published in the Federal Register.
Compliance-related information
Watch our video on YouTube to learn more about the rule in a plain language format which makes the content more accessible for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.
Summary of the rules
Read the summary to learn more about the background of these rules and how they affect providers of financial products and services.
What this means for consumers
The new rule will go into effect on January 10, 2014. This summary outlines some of the ways we expect it to impact consumers who have residential mortgage loans. Download the consumer summary.
Related proposals
August 10, 2012: The Bureau issued related proposals for public comment. These proposals were published in the Federal Register on September 17, 2012. You can view the electronic dockets on Regulations.gov, which contain the proposals, comments, Small Business Review Panel Report, and Consumer Testing report:
Real Estate Settlement Procedures Act (Regulation X) Mortgage Servicing Proposal
Truth in Lending Act (Regulation Z) Mortgage Servicing Proposal
April 19, 2013: We issued a proposed rule with request for public comment that amends some of the final mortgage rules issued by the bureau in January of 2013. Specifically, it amends this rule and the Ability to Repay/Qualified Mortgage rule.
