Interim Final Rule on RESPA Loss Mitigation Options Related to COVID-19
Updated 07/10/2020
This tool summarizes the CFPB’s Interim Final Rule temporarily amending RESPA’s loss mitigation options due to the COVID-19 pandemic.
The following are the key takeaways:
- Mortgage servicers are temporarily allowed to offer certain loss mitigation options based on incomplete loss mitigation applications.
- Servicers must permit the borrower to delay paying certain amounts until the mortgage loan is refinanced, the mortgaged property is sold, the term of the mortgage loan ends, or for FHA-insured mortgages, until the mortgage insurance terminates.
- Any amounts that the borrower may delay paying through the loss mitigation option must not accrue interest or fees, and the servicer must waive all existing late charges, penalties, stop payment fees, or other charges.
- The borrower’s acceptance of the loss mitigation offer must resolve any prior delinquency.
Members Can Download This Tool
Login to Download
Not Yet a Member?
Our members enjoy:
On-demand regulatory guidance hotline – by chat, phone and email – available from anywhere, on any device – 7 am - 6 pm, M-F, Central time
Research time saved daily & weekly across forms, checklists, and trainings — for every regulation
Hours of form-building and branding of bank documents saved; in some cases, even the budget of additional staff
A sounding board for support and reassessment when institutional goals or the regulatory environment changes
Access to attorneys and compliance specialists for risk modelling and decision-making in advance of large business decisions
The knowledge that C/A was created and owned by 30 State Bankers Association to provide bank compliance services to their membership organizations
Find out how a personalized team of attorneys and compliance professionals helps build targeted compliance strategies throughout your institution when you take our Live Membership Demo.