CFPB gives policy guidance on servicing rule amendments
AML AND COMPLIANCE NEWS |
The Consumer Financial Protection Bureau (Bureau or CFPB) has announced that it does not intend to start taking supervisory or enforcement action for violations of existing Regulation X or Regulation Z resulting from a servicer’s early compliance with the 2016 final servicing rule for a period of three days before the applicable effective date. See CFPB Guidance on servicing rules.
While certain amendments are going into effect Thursday, Oct. 19, 2017, others have a compliance date of Thursday, April 19, 2018. Servicers are prohibited from early adoption of some of the 2016 amendments, but under the new guidance, servicers would be permitted to implement the rules the Monday before the Thursday effective dates. This gives servicers the ability to update their systems over a weekend instead of trying to get it all done overnight before the effective Thursday date.
The CFPB has also made some corrections to the final rule. These include correcting typographical errors and correcting the effective date of official commentary relating to servicers’ ability to remove certain language in periodic statement sample forms. This corrected date is now April 19, 2018. Lastly, the CFPB amended the Bureau’s authority citation for Regulation Z.