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:

  1. Mortgage servicers are temporarily allowed to offer certain loss mitigation options based on incomplete loss mitigation applications.
  2. 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.
  3. 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.
  4. The borrower’s acceptance of the loss mitigation offer must resolve any prior delinquency.

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