Treatment of Certain COVID-19 Related Loss Mitigation Options Under the Real Estate Settlement Procedures Act (RESPA) (Regulation X) (rule, 85 FR 39055,…
Summary
An interim final rule of the Bureau of Consumer Financial Protection amending Regulation X, 12 CFR Part 1024, Docket No. CFPB–2020–0022, published in the Federal Register, Vol. 85, No. 126, on Tuesday, June 30, 2020, beginning at page 39055. The amendments temporarily permit mortgage servicers to offer certain loss mitigation options based on the evaluation of an incomplete loss mitigation application. Eligible options must, among other things, permit borrowers to delay paying certain amounts until the mortgage loan is refinanced, the mortgaged property is sold or the term of the mortgage loan ends. Those amounts include principal and interest payments forborne through payment forbearance programs for borrowers experiencing financial hardships due to the COVID–19 emergency. The rule is effective on July 1, 2020.
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“Treatment of Certain COVID-19 Related Loss Mitigation Options Under the Real Estate Settlement Procedures Act (RESPA) (Regulation X) (rule, 85 FR 39055,….”
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Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations 39055
Renewed Amendment Number 5, 2017, as corrected (ADAMS Accession amounts include, without limitation, all
Revision 1, Effective Date: December 11, No. ML18018A100). principal and interest payments
2017. Amendment Number 14 Effective forborne through payment forbearance
Amendment Number 6 Effective Date: Date: April 25, 2017, superseded by programs made available to borrowers
December 22, 2003, superseded by Renewed Amendment Number 14, on experiencing financial hardships due,
Amendment Number 6, Revision 1, on December 11, 2017. directly or indirectly, to the COVID–19
April 25, 2017, superseded by Renewed Renewed Amendment Number 14 emergency, including a payment
Amendment Number 6, Revision 1, on Effective Date: December 11, 2017. forbearance program offered pursuant to
December 11, 2017. Renewed Amendment Number 15 section 4022 of the Coronavirus Aid,
Renewed Amendment Number 6, Effective Date: January 22, 2019. Relief, and Economic Security Act.
Revision 1, Effective Date: December 11, Renewed Amendment Number 16 These amounts also include principal
2017. Effective Date: September 14, 2020. and interest payments that are due and
Amendment Number 7 Effective Date: SAR Submitted by: Transnuclear, Inc. unpaid by borrowers experiencing
March 2, 2004, superseded by SAR Title: Final Safety Analysis financial hardships due, directly or
Amendment Number 7, Revision 1, on Report for the Standardized NUHOMS® indirectly, to the COVID–19 emergency.
April 25, 2017, superseded by Renewed Horizontal Modular Storage System for DATES: This interim final rule is
Amendment Number 7, Revision 1, on Irradiated Nuclear Fuel. effective on July 1, 2020. Comments
December 11, 2017. Docket Number: 72–1004. must be received on or before August
Renewed Amendment Number 7, Certificate Expiration Date: January
14, 2020.
Revision 1, Effective Date: December 11, 23, 2015.
Renewed Certificate Expiration Date: ADDRESSES: You may submit comments,
2017.
Amendment Number 8 Effective Date: January 23, 2055. identified by Docket No. CFPB–2020–
December 5, 2005, superseded by Model Number: NUHOMS®–24P, 0022, by any of the following methods:
Amendment Number 8, Revision 1, on –24PHB, –24PTH, –32PT, –32PTH1, • Federal eRulemaking Portal: http://
April 25, 2017, superseded by Renewed –37PTH, –52B, –61BT, –61BTH, and www.regulations.gov. Follow the
Amendment Number 8, Revision 1, on –69BTH. instructions for submitting comments.
December 11, 2017. • Email: 2020-IFR-
* * * * *
Renewed Amendment Number 8, MortgageServicing@cfpb.gov. Include
Dated June 15, 2020. Docket No. CFPB–2020–0022 in the
Revision 1, Effective Date: December 11,
2017. For the Nuclear Regulatory Commission. subject line of the message.
Amendment Number 9 Effective Date: Margaret M. Doane, • Hand Delivery/Mail/Courier:
April 17, 2007, superseded by Executive Director for Operations. Comment Intake, Bureau of Consumer
Amendment Number 9, Revision 1, on [FR Doc. 2020–13730 Filed 6–29–20; 8:45 am] Financial Protection, 1700 G Street NW,
April 25, 2017, superseded by Renewed BILLING CODE 7590–01–P
Washington, DC 20552. Please note that
Amendment Number 9, Revision 1, on due to circumstances associated with
December 11, 2017. the COVID–19 pandemic, the Bureau
Renewed Amendment Number 9, discourages the submission of
BUREAU OF CONSUMER FINANCIAL
Revision 1, Effective Date: December 11, comments by hand delivery, mail, or
PROTECTION
2017. courier.
Amendment Number 10 Effective 12 CFR Part 1024 Instructions: The Bureau encourages
Date: August 24, 2009, superseded by the early submission of comments. All
[Docket No. CFPB–2020–0022] submissions should include the agency
Amendment Number 10, Revision 1, on
April 25, 2017, superseded by Renewed name and docket number for this
Treatment of Certain COVID–19
Amendment Number 10, Revision 1, on rulemaking. Because paper mail in the
Related Loss Mitigation Options Under
December 11, 2017. Washington, DC area and at the Bureau
the Real Estate Settlement Procedures
Renewed Amendment Number 10, is subject to delay, and in light of
Act (RESPA) (Regulation X)
Revision 1, Effective Date: December 11, difficulties associated with mail and
2017. AGENCY: Bureau of Consumer Financial hand deliveries during the COVID–19
Amendment Number 11 Effective Protection. pandemic, commenters are encouraged
Date: January 7, 2014, superseded by ACTION: Interim final rule with request to submit comments electronically. In
Amendment Number 11, Revision 1, on for public comment. general, all comments received will be
April 25, 2017, superseded by Renewed posted without change to https://
Amendment Number 11, Revision 1, on SUMMARY: The Bureau of Consumer www.regulations.gov. In addition, once
December 11, 2017. Financial Protection (Bureau) is issuing the Bureau’s headquarters reopens,
Renewed Amendment Number 11, this interim final rule to amend comments will be available for public
Revision 1, Effective Date: December 11, Regulation X. The amendments inspection and copying at 1700 G Street
2017, as corrected (ADAMS Accession temporarily permit mortgage servicers to NW, Washington, DC 20552, on official
No. ML18018A043). offer certain loss mitigation options business days between the hours of 10
Amendment Number 12 Effective based on the evaluation of an a.m. and 5 p.m. Eastern Time. At that
Date: Amendment not issued by the incomplete loss mitigation application. time, you can make an appointment to
NRC. Eligible loss mitigation options, among inspect the documents by telephoning
Amendment Number 13 Effective other things, must permit borrowers to 202–435–9169.
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Date: May 24, 2014, superseded by delay paying certain amounts until the All comments, including attachments
Amendment Number 13, Revision 1, on mortgage loan is refinanced, the and other supporting materials, will
April 25, 2017, superseded by Renewed mortgaged property is sold, the term of become part of the public record and
Amendment Number 13, Revision 1, on the mortgage loan ends, or, for a subject to public disclosure. Proprietary
December 11, 2017. mortgage insured by the Federal information or sensitive personal
Renewed Amendment Number 13, Housing Administration (FHA), the information, such as account numbers,
Revision 1, Effective Date: December 11, mortgage insurance terminates. These Social Security numbers, or names of
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39056 Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations
other individuals, should not be paying certain amounts until the Procedures Act of 1974,4 and included
included. Comments will not be edited mortgage loan is refinanced, the these rules in Regulation X.5 The
to remove any identifying or contact mortgaged property is sold, the term of Bureau later clarified and revised
information. the mortgage loan ends, or, for a Regulation X’s servicing rules through
FOR FURTHER INFORMATION CONTACT: Joel mortgage insured by FHA, the mortgage several additional notice-and-comment
Singerman, Counsel, or Terry J. Randall, insurance terminates. These amounts rulemakings.6 In part, these rulemakings
Senior Counsel, Office of Regulations, at include, without limitation, all were intended to address deficiencies in
202–435–7700 or https:// principal and interest payments servicers’ handling of delinquent
reginquiries.consumerfinance.gov/. If forborne under a payment forbearance borrowers and loss mitigation
you require this document in an program made available to borrowers applications during and after the 2008
alternative electronic format, please experiencing a financial hardship due, financial crisis.7 When the housing
contact CFPB_Accessibility@cfpb.gov. crisis began, servicers were faced with
directly or indirectly, to the COVID–19
historically high numbers of delinquent
SUPPLEMENTARY INFORMATION: emergency, including one made
mortgages, loan modification requests,
pursuant to the Coronavirus Economic and in-process foreclosures in their
I. Summary of the Interim Final Rule
Stabilization Act, section 4022 (15 portfolios.8 Many servicers lacked the
Title 12 CFR part 1024 (Regulation X) U.S.C. 9056). These amounts also infrastructure, trained staff, controls,
generally requires servicers to obtain a include, without limitation all other and procedures needed to manage
complete loss-mitigation application principal and interest payments that are effectively the flood of delinquent
before evaluating a mortgage borrower due and unpaid by a borrower mortgages they were obligated to
for a loss-mitigation option, such as a experiencing financial hardship due, handle.9 Inadequate staffing and
loan modification or short sale.1 directly or indirectly, to the COVID–19
Regulation X provides an exception emergency. For purposes of this 4 Public Law 93–533, 88 Stat. 1724 (12 U.S.C.
from this requirement for certain short- criterion, the term of the mortgage loan 2601 et seq.).
term loss mitigation options.2 Due to the means the term of the mortgage loan
5 78 FR 10695 (Feb. 14, 2013). In January 2013,
particular needs of mortgage servicers according to the obligation between the
the Bureau also issued separate ‘‘Mortgage
Servicing Rules Under the Truth in Lending Act
and borrowers during the novel
parties in effect when the borrower is (Regulation Z)’’ (2013 TILA Servicing Final Rule).
coronavirus disease (COVID–19) See 78 FR 10902 (Feb. 14, 2013). The Bureau
offered the loss mitigation option.
pandemic emergency (COVID–19 conducted an assessment of this rule in 2018–19
Second, any amounts that the borrower and released a report detailing its findings in early
emergency), the Bureau is amending
Regulation X to temporarily permit may delay paying through the loss 2019. 2013 RESPA Servicing Rule Assessment
mitigation option do not accrue interest; Report, https://files.consumerfinance.gov/f/
mortgage servicers to offer certain loss documents/cfpb_mortgage-servicing-rule-
mitigation options without obtaining a the servicer does not charge any fee in assessment_report.pdf.
complete loss mitigation application. connection with the loss mitigation 6 Amendments to the 2013 Mortgage Rules under
Servicers may offer eligible loss option; and the servicer waives all the Real Estate Settlement Procedures Act
existing late charges, penalties, stop (Regulation X) and the Truth in Lending Act
mitigation options to a borrower who (Regulation Z), 78 FR 44686 (July 24, 2013);
has received a payment forbearance payment fees, or similar charges Amendments to the 2013 Mortgage Rules under the
program made available to borrowers promptly upon the borrower’s Equal Credit Opportunity Act (Regulation B), Real
acceptance of the loss mitigation option. Estate Settlement Procedures Act (Regulation X),
experiencing a financial hardship due, and the Truth in Lending Act (Regulation Z), 78 FR
directly or indirectly, to the COVID–19 Third, the borrower’s acceptance of the 60382 (Oct. 1, 2013); Amendments to the 2013
emergency, including one offered loss mitigation offer must resolve any Mortgage Rules under the Real Estate Settlement
pursuant to section 4022 of the prior delinquency. These criteria Procedures Act (Regulation X) and the Truth in
Lending Act (Regulation Z), 78 FR 62993 (Oct. 23,
Coronavirus Aid, Relief, and Economic maintain important protections for 2013); Amendments to the 2013 Mortgage Rules
Security Act (CARES Act),3 or who has borrowers and are intended to align Under the Real Estate Settlement Procedures Act
had other principal and interest with the COVID–19 payment deferral (Regulation X) and the Truth in Lending Act
payments that are due and unpaid as a option announced by the Federal (Regulation Z), 81 FR 72160 (Oct. 19, 2016);
Amendments to the 2013 Mortgage Rules Under
result of a financial hardship due, Housing Finance Agency (FHFA), RESPA (Regulation X) and TILA (Regulation Z), 82
directly or indirectly, to the COVID–19 discussed in part II, and other similar FR 30947 (July 5, 2017); Mortgage Servicing Rules
emergency. programs. Under RESPA (Regulation X), 82 FR 47953 (Oct. 16,
The amendment conditions eligibility 2017). The Bureau also issued notices providing
The interim final rule also excludes guidance on the Rule and soliciting comment on the
for the new exception on the loss Rule. See, e.g., Applicability of Regulation Z’s
servicers from certain regulatory
mitigation option satisfying three Ability-to-Repay Rule to Certain Situations
requirements if a borrower accepts an Involving Successors-in-interest, 79 FR 41631 (July
criteria. First, the loss mitigation option
must permit the borrower to delay option offered pursuant to the new 17, 2014); Safe Harbors from Liability Under the
exception. Specifically, the interim final Fair Debt Collections Practices Act for Certain
Actions in Compliance with Mortgage Servicing
1 Section 1024.41(b)(1) (requiring servicer to rule provides that the servicer is not Rules Under the Real Estate Settlement Procedures
exercise reasonable diligence in obtaining required to continue the reasonable Act (Regulation X) and the Truth in Lending Act
documents and information to complete a loss diligence efforts § 1024.41(b)(1) (Regulation Z), 81 FR 71977 (Oct. 19, 2016); Policy
mitigation application); § 1024.41(c)(1)(i) (requiring Guidance on Supervisory and Enforcement
evaluation of borrower for all loss mitigation
otherwise requires or send the
Priorities Regarding Early Compliance With the
options available to the borrower if the servicer acknowledgement notice § 1024.41(b)(2) 2016 Amendments to the 2013 Mortgage Servicing
receives a complete loss mitigation application otherwise requires. Rules Under RESPA (Regulation X) and TILA
more than 37 days before a scheduled foreclosure (Regulation Z), 82 FR 29713 (June 30, 2017).
II. Background
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sale); and § 1024.41(c)(2)(i) (prohibiting servicer 7 See generally 78 FR 10699–701.
from offering a loss mitigation option based on an 8 See discussion in Chapter 3 of the 2013 RESPA
evaluation of any information provided by a A. The Bureau’s Regulation X Mortgage Servicing Rule Assessment Report. 2013 RESPA
borrower in connection with an incomplete loss Servicing Rules Servicing Rule Assessment Report, https://
mitigation application). Small servicers, as defined files.consumerfinance.gov/f/documents/cfpb_
in Regulation Z, 12 CFR 1026.41, are not subject to In February 2013, the Bureau issued mortgage-servicing-rule-assessment_report.pdf.
these requirements. 12 CFR 1024.30(b)(1). 9 Mortgage Servicing Rules Under the Real Estate
2 12 CFR 1024.41(c)(2)(iii). the Mortgage Servicing Rules to
Settlement Procedures Act (Regulation X), 78 FR
3 Public Law 116–136, 134 Stat. 281 (2020). implement the Real Estate Settlement 10696, 10700 (Feb. 14, 2013).
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Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations 39057
procedures led to a range of reported that more flexible requirements may be to payment forbearance programs
problems with servicing of delinquent warranted when borrowers are facing (CARES Act forbearance) if they submit
loans, including some servicers certain hardships. For example, a request to their mortgage servicer and
misleading borrowers, failing to Regulation X provides flexibility for affirm that they are experiencing a
communicate with borrowers, losing or servicers when they offer short-term financial hardship during the COVID–19
mishandling borrower-provided payment forbearance programs or short- emergency.21 By requiring servicers to
documents supporting loan term repayment plans, as defined in grant CARES Act forbearances to certain
modification requests, and generally Regulation X, based upon an evaluation borrowers with federally backed
providing inadequate service to of an incomplete application.17 In mortgages (which account for
delinquent borrowers.10 granting this flexibility, the Bureau approximately 80 percent of mortgage
The Bureau’s mortgage servicing rules explained that borrowers facing only borrowers), the CARES Act established
addressed these concerns by temporary hardships might benefit from payment forbearance as the primary tool
establishing procedures that mortgage a more efficient application process that that servicers of these loans would use
servicers generally must follow in leads to a temporary solution without initially to assist struggling borrowers
evaluating loss mitigation applications exhausting the protections under during the COVID–19 emergency. The
submitted by mortgage borrowers.11 § 1024.41 that are determined as of the Bureau understands that servicers of
Among other things, as relevant here, date a complete application is other mortgages that are not ‘‘Federally
Regulation X generally requires received.18 backed mortgage loans’’ under the
servicers to obtain a complete loss- CARES Act may be offering similar
mitigation application from a borrower B. The CARES Act and COVID–19
Forbearances payment forbearance programs to their
before offering the borrower a loss- borrowers.22
mitigation option, such as a loan By late March 2020, the COVID–19 On April 3, 2020, the Bureau, the
modification or short sale.12 Servicers emergency was significantly affecting Board of Governors of the Federal
generally may not offer a loss-mitigation the economy. Between March 15 and Reserve System (the Board), the Federal
option based upon an evaluation of any May 15, 2020, over 35 million people Deposit Insurance Corporation (FDIC),
information provided in connection filed initial jobless claims, and the the National Credit Union
with an incomplete application.13 The unemployment rate climbed to over 14 Administration (NCUA), the Office of
loss mitigation provisions were percent in April—the highest monthly the Comptroller of the Currency (OCC),
motivated in part by concerns that some level since 1948 when the Bureau of and the State Banking Regulators issued
servicers were doing an inadequate job Labor and Statistics started tracking this
a joint statement (Joint Statement)
of communicating with borrowers series.19
recognizing the serious impact the
regarding loss mitigation options,14 and On March 27, 2020, the CARES Act
was enacted. Among other things, the COVID–19 emergency was having on
that some servicers were unwilling to consumers and on the operations of
work with borrowers to reach agreement CARES Act ensures that borrowers
experiencing a financial hardship due, mortgage servicers.23 The Joint
on loss mitigation options.15 The
Bureau intended this restriction to help directly or indirectly, to the COVID–19
Housing and Community Development Act of 1992
ensure that borrowers have a full and emergency and who have ‘‘Federally (12 U.S.C. 1715z–13a, 1715z–13b); guaranteed or
fair opportunity to be evaluated for loss backed mortgage loans’’ 20 have access insured by the Department of Veterans Affairs;
mitigation options.16 guaranteed or insured by the Department of
Agriculture; made by the Department of
However, in issuing these 17 12 CFR 1024.41(c)(2)(iii); see also comments
Agriculture; or purchased or securitized by the
requirements, the Bureau recognized 41(c)(2)(iii)–1 and –4 (defining short-term payment
forbearance program and short-term repayment plan Federal Home Loan Mortgage Corporation or the
for purposes of the regulation). Federal National Mortgage Association. CARES Act
10 See U.S. Gov’t Accountability Off., GAO–10– 18 78 FR at 60400; 81 FR at 72246. Section section 4022(a)(2).
634, Troubled Asset Relief Program: Further 1024.41(i) limits the circumstances when a servicer
21 CARES Act section 4022(b). Upon receiving the
Actions Needed to Fully and Equitably Implement must comply with the procedures described in borrower’s request for forbearance, the servicer
Foreclosure Mitigation Actions, at 14–16 (2010), § 1024.41. Servicers do not need to comply with the must provide a forbearance for up to 180 days with
https://www.gao.gov/assets/310/305891.pdf; procedures described in § 1024.41 if the servicer no additional documentation required other than
Hearing on Problems in Mortgage Servicing from has previously complied with the requirements of the borrower’s attestation to a financial hardship
Modification to Foreclosure Before the S. Comm. on § 1024.41 for a complete loss mitigation application caused by the COVID–19 emergency and with no
Banking, Housing, and Urban Affairs, 111th Cong. submitted by the borrower and the borrower has fees, penalties, or interest (beyond the amounts
54 (2010) (statement of Thomas J. Miller, Att’y Gen. been delinquent at all times since submitting the scheduled or calculated as if the borrower made all
State of Iowa). prior complete application. Because a servicer who contractual payments on time and in full under the
11 See generally 12 CFR 1024.41. Small servicers,
offers a borrower a short-term option based on terms of the mortgage contract) charged to the
as defined in Regulation Z, 12 CFR 1026.41, are evaluation of an incomplete application pursuant to borrower in connection with the forbearance. The
generally exempt from these requirements. 12 CFR § 1024.41(c)(2)(iii) has not evaluated a complete servicer must extend the forbearance for up to an
1024.30(b)(1). application submitted by the borrower, a servicer additional 180 days at the request of the borrower,
12 12 CFR 1024.41(b)(1) (requiring servicer to provided that the request for an extension is made
would have to comply with the procedures
exercise reasonable diligence in obtaining described in § 1024.41 if the borrower submits a during the covered period. Note that the borrower
documents and information to complete a loss complete application after the servicer offers the may request that either the initial or extended
mitigation application); § 1024.41(c)(1)(i) (requiring borrower a short-term payment forbearance forbearance period be less than 180 days. See
evaluation of borrower for all loss mitigation program. CARES Act section 4022(b) and (c)(1).
options available to the borrower if the servicer 19 U.S. Bureau of Labor Statistics, Labor Force 22 Such programs may be based on servicers’ own
receives a complete loss mitigation application Statistics from the Current Population Survey, programs or policy initiative or may be required by
more than 37 days before a scheduled foreclosure https://www.bls.gov/ces (last visited June 6, 2020). State or local laws.
sale); and § 1024.41(c)(2)(i) (prohibiting servicer 20 The CARES Act defines a ‘‘Federally backed 23 Joint Statement on Supervisory and
from offering a loss mitigation option based on an mortgage loan’’ as any loan which is secured by a Enforcement Practices Regarding the Mortgage
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evaluation of any information provided by a first or subordinate lien on residential real property Servicing Rules in Response to the COVID–19
borrower in connection with an incomplete loss (including individual units of condominiums and Emergency and the CARES Act (Apr. 3, 2020),
mitigation application). Small servicers, as defined cooperatives) designed principally for the https://files.consumerfinance.gov/f/documents/
in Regulation Z, 12 CFR 1026.41, are not subject to occupancy of from one-to-four families that is cfpb_interagency-statement_mortgage-servicing-
these requirements. 12 CFR 1024.30(b)(1).
13 12 CFR 1024.41(c)(2)(i).
insured by the Federal Housing Administration rules-covid-19.pdf. On the same day, the Bureau
under title II of the National Housing Act (12 U.S.C. issued additional compliance guidance to provide
14 78 FR at 10807.
1707 et seq.); insured under section 255 of the mortgage servicers with enhanced clarity about
15 Id. at 10814.
National Housing Act (12 U.S.C. 1715z–20); existing flexibility in the Bureau’s mortgage
16 Id. at 10815. guaranteed under section 184 or 184A of the Continued
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39058 Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations
Statement informed servicers of the November of 2008 during the great Mae and Freddie Mac permit servicers
agencies’ flexible supervisory and recession.29 to offer FHFA COVID–19 payment
enforcement approach during the deferrals to any borrowers who meet
C. COVID–19 Emergency: Post-
emergency regarding certain consumer certain criteria if the borrower indicates
Forbearance Options and Post-
communications required by Regulation to the servicer that (1) the borrower can
Delinquency Options
X, and provided guidance on servicers’ afford to resume their normal monthly
compliance with Regulation X when The CARES Act does not specify how payments due before the forbearance
offering CARES Act forbearances and borrowers receiving CARES Act and (2) the borrower cannot afford full
other payment forbearance programs forbearances must repay the forborne reinstatement or a repayment plan to
during the COVID–19 emergency.24 The payments. While there are good reasons bring their mortgage loan current when
Joint Statement explained that, when a for this, it creates uncertainty for they exit forbearance.35 Fannie Mae and
borrower requests a CARES Act stakeholders as to how borrowers must Freddie Mac prohibit servicers from
forbearance and affirms that the repay these amounts when CARES Act charging borrowers who accept an
borrower is experiencing a financial forbearances expire. As many initial FHFA COVID–19 payment deferral
hardship during the COVID-emergency, forbearance periods were set at 90 days, administrative fees, and direct servicers
it constitutes an incomplete loss many of them will expire in June or July to waive all late charges, penalties, stop
mitigation application for purposes of 2020. payment fees, or similar charges upon
Regulation X.25 Although receipt of an The Federal National Mortgage completing a COVID–19 payment
incomplete application generally Association (Fannie Mae), Federal deferral.36 This program takes effect on
triggers a servicer’s obligations under Home Loan Mortgage Company (Freddie July 1, 2020.37 Other mortgage investors
§ 1024.41, the Joint Statement also Mac), FHA, and other owners or and insurers have also announced
provided that a CARES Act forbearance insurers of mortgage loans have similar loss mitigation options.38
announced programs to assist borrowers After FHFA announced these deferral
qualifies as a short-term payment
in repayment of the forborne amounts.30 programs, industry stakeholders and
forbearance program 26 under
On May 13, 2020, FHFA announced that consumer advocates raised concerns
Regulation X, so certain loss mitigation
Fannie Mae and Freddie Mac would about whether servicers could offer an
requirements under Regulation X do not
make a payment deferral program FHFA COVID–19 payment deferral
apply.27
available to borrowers in a COVID–19 using the streamlined application
By early June 2020, as a result of the
forbearance plan (FHFA COVID–19 procedures described above without
CARES Act and other similar
payment deferral) and to borrowers who violating Regulation X’s general
forbearance programs made available by
have experienced a financial hardship prohibition of offering a loss mitigation
owners or investors of mortgage loans,
resulting from COVID–19 that has option based on an evaluation of an
as many as 4.3 million mortgage affected their ability to make their full
borrowers (or 8.55 percent of mortgage incomplete application.39 The Bureau
monthly payment.31 FHFA indicated has evaluated the interaction between
borrowers) nationwide were in that these programs will be available to
forbearance programs.28 After reaching a the FHFA payment deferral procedures
borrowers who are able to return to and Regulation X, and engaged in
historic low in January of 2020 (just making their normal monthly mortgage
above 3 percent), the mortgage informal outreach with FHFA, mortgage
payment.32 According to FHFA, these servicers, trade associations, consumer
delinquency rate (which includes loans programs take the missed mortgage
in forbearance) had more than doubled advocacy groups, and others. Industry
payments and make them a payment stakeholders and consumer advocates
by early June and was at its highest level due at the sale of the home, refinancing urged the Bureau to take steps to ensure
since 2013. The delinquency rate was of the mortgage loan, or the end of the that servicers would not be in violation
3.1 percentage points higher in April loan.33 Fannie Mae and Freddie Mac of Regulation X if they were to use the
than in March—a monthly increase have established streamlined streamlined procedures.
three times the previous record set in application procedures for these The Bureau supports the goal of the
programs that permit servicers to offer FHFA’s COVID–19 payment deferral
servicing rules that they may use to help consumers an FHFA COVID–19 payment deferral program and certain other similar
during the COVID–19 emergency. Bureau of
Consumer Fin. Prot., Bureau’s Mortgage Servicing
without collecting Fannie Mae’s and programs designed to assist borrowers
Rules FAQs related to the COVID–19 Emergency, Freddie Mac’s ‘‘complete Borrower experiencing financial hardships due,
https://files.consumerfinance.gov/f/documents/ Response Package.’’ 34 Rather, Fannie directly or indirectly, to the COVID–19
cfpb_mortgage-servicing-rules-covid-19_faqs.pdf. emergency. Through these programs,
24 Joint Statement, supra note 23.
25 Id. The Joint Statement also explained that
29 Black Knight Fin. Servs., Mortgage Monitor
eligible borrowers can eliminate the
(Apr. 2020), https://www.bls.gov/ces/. immediate potential risk of losing their
servicers may provide multiple sequential short- 30 FHFA, FHFA Announces Payment Deferral as
term payment forbearance programs under the New Repayment Option for Homeowners in COVID– homes, resume repaying the mortgage
Regulation X mortgage servicing rules. 19 Forbearance Plans (May 13, 2020), https:// loan with no delinquency and no
26 Comment 41(c)(2)(iii)–1 explains that a short- www.fhfa.gov/Media/PublicAffairs/Pages/FHFA- additional fees or interest, and better
term payment forbearance program is a loss Announces-Payment-Deferral-as-New-Repayment- plan how eventually to repay the
mitigation option pursuant to which a servicer Option-for-Homeowners-in-COVID-19-Forbearance-
allows a borrower to forgo making certain payments Plans.aspx; HUD Mortgagee Letter 2020–06, https://
or portions of payments for a period of time. A www.hud.gov/sites/dfiles/OCHCO/documents/20- Freddie Mac Bulletin 2020–15, https://
short-term payment forbearance program for 06hsngml.pdf. guide.freddiemac.com/app/guide/bulletin/2020-
purposes of § 1024.41(c)(2)(iii) allows the 31 FHFA, supra note 30. 15?_ga=2.76149522.621170394.1590694543-
forbearance of payments due over periods of no 32 Id. 1945440177.1590694543.
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35 See id.
more than six months. Such a program would be 33 Id. While initial forbearance under the CARES
short-term regardless of the amount of time a 36 See id.
Act and similar programs probably constitute short-
servicer allows the borrower to make up the missing term payment forbearance programs under 37 See id.
payments. § 1024.41(c)(2)(iii), the anticipated repayments 38 HUD Mortgagee Letter 2020–06, supra note 30.
27 Joint Statement, supra note 23. arrangements may not constitute short-term 39 See, e.g., JDSupra, Can Mortgage Servicers
28 Mortgage Bankers Ass’n, Share of Mortgage repayment plans under that section. See also Joint Legally Offer the GSEs’ COVID deferral options?
Loans in Forbearance Increases to 8.55%, https:// Statement, supra note 23. (May 14, 2020), https://www.jdsupra.com/
www.mba.org/2020-press-releases/june/share-of- 34 See Fannie Mae Lender Letter 2020–07, https:// legalnews/can-mortgage-servicers-legally-offer-
mortgage-loans-in-forbearance-increases-to-855. singlefamily.fanniemae.com/media/22916/display; 42513/.
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Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations 39059
forborne amount that servicers have Mortgage Servicing Final Rule,42 as amendments between the FHFA’s
deferred. In addition, the streamlined discussed in detail in the Legal announcement of its COVID–19
application procedures offered by Authority and Section-by-Section payment deferral program on May 13,
Fannie Mae, Freddie Mac, and others Analysis of the 2013 Mortgage Servicing 2020, and its effective date of July 1,
may help ensure that servicers have Final Rule. 2020. As discussed more fully in part II,
sufficient resources to address the the economic effects of the COVID–19
A. Respa emergency have resulted quickly in
unusually large number of borrowers
who will be exiting CARES Act or Section 19(a) of RESPA, 12 U.S.C. major challenges in the mortgage
similar forbearances and may be seeking 2617(a), authorizes the Bureau to market. Congress enacted the CARES
assistance in the coming months. There prescribe such rules and regulations, to Act in late March, making forbearances
are circumstances where Regulation X make such interpretations, and to grant available to many borrowers with
may require a servicer to collect a such reasonable exemptions for classes federally backed mortgages, which
complete application from a borrower of transactions, as may be necessary to account for approximately 80 percent of
before offering this type of program. achieve the purposes of RESPA, which the mortgage market.
However, that result may not serve the include its consumer protection Because the CARES Act does not
particular needs of borrowers and purposes. In addition, section 6(j)(3) of specify how borrowers provided CARES
servicers during the COVID–19 RESPA, 12 U.S.C. 2605(j)(3), authorizes Act forbearances will repay the forborne
emergency. the Bureau to establish any payments, Fannie Mae, Freddie Mac,
For these and the reasons discussed requirements necessary to carry out FHA, and other owners or insurers of
below, the Bureau is amending section 6 of RESPA, section 6(k)(1)(E) of mortgage loans worked quickly after
Regulation X to specify that servicers RESPA, and 12 U.S.C. 2605(k)(1)(E), and they placed borrowers in these
may offer loss mitigation options that authorizes the Bureau to prescribe forbearances to devise loss mitigation
meet certain criteria based on the regulations that are appropriate to carry options for borrowers who could not
evaluation of an incomplete application, out RESPA’s consumer protection afford to repay the forborne amounts in
and that servicers need not comply with purposes. The consumer protection a lump sum at the conclusion of the
certain other Regulation X requirements purposes of RESPA include ensuring forbearance period. FHFA, Fannie Mae,
once the borrower accepts that option. that servicers respond to borrower and Freddie Mac announced a COVID–
These criteria are intended to align with requests and complaints in a timely 19 post-forbearance program, the
the criteria outlined in FHFA’s COVID– manner and maintain and provide COVID–19 payment deferral, on May 13,
19 payment deferral and other accurate information, helping borrowers 2020.46 These programs take effect on
comparable programs, such as FHA’s avoid unwarranted or unnecessary costs July 1, 2020, and, because significant
COVID–19 partial claim. and fees and facilitating review for numbers of borrowers entered 90-day
The Bureau believes that this foreclosure avoidance options. The forbearances in late March and early
flexibility is appropriate during the amendments to Regulation X in this April, this coincides with when many
COVID–19 emergency, which presents interim final rule are intended to borrowers’ forbearance periods will end.
extraordinary circumstances. The achieve some or all these purposes. Thus, starting on July 1, 2020—absent
Bureau will evaluate comments received immediate action by the Bureau—
B. Dodd-Frank Act servicers would have to reconcile
under the interim final rule to
determine whether it is appropriate to Section 1022(b)(1) of the Dodd-Frank FHFA’s COVID–19 payment deferral
revise the amendments. The Bureau will Act, 12 U.S.C. 5512(b)(1), authorizes the programs with the anti-evasion
also continue to monitor the market to Bureau to prescribe rules ‘‘as may be requirement in the servicing rules. As a
assess consumers’ experiences under necessary or appropriate to enable the practical matter, servicers would not be
these programs and the interim rule. Bureau to administer and carry out the able to offer the payment deferral to
purposes and objectives of the Federal some borrowers without first having
As part of this rulemaking, the Bureau
consumer financial laws, and to prevent them complete their loss mitigation
consulted with FHFA, the Board, FDIC,
evasions thereof.’’ RESPA is a Federal applications, a step that would delay or
NCUA, OCC, and the Department of
consumer financial law. obstruct relief to borrowers and frustrate
Housing and Urban Development.
the purpose and immediate need for the
IV. Administrative Procedure Act
III. Legal Authority program.47 It is critical that the Bureau’s
Under the Administrative Procedure temporary revision to Regulation X be in
The Bureau is issuing this interim Act,43 notice and opportunity for public
final rule pursuant to its authority under effect when these forbearance programs
comment are not required if the Bureau take effect to ensure that borrowers and
RESPA and the Dodd-Frank Wall Street for good cause finds that notice and
Reform and Consumer Protection Act public comment are impracticable, 46 Borrowers who are not exiting forbearance may
(Dodd-Frank Act),40 including the unnecessary, or contrary to the public be also be eligible for this program if their mortgage
authorities discussed below. This interest.44 Similarly, publication of this loan became delinquent resulting from a financial
interim final rule amends a provision interim final rule at least 30 days before
hardship due, directly or indirectly, to the COVID–
previously adopted by the Bureau in the 19 emergency. Due to the rising delinquency rate
its effective date is not required where discussed in part I, significant numbers of
2016 Mortgage Servicing Final Rule.41 the Bureau has identified good cause for borrowers who are not exiting forbearance could be
In doing so, the Bureau relied on one or a different effective date.45 eligible.
more of the authorities discussed below, The Bureau finds that prior notice and
47 As noted above, in the short period between the
as well as other authority. The Bureau FHFA’s announcement of its program and the
public comment are impracticable
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issuance of this rule, the Bureau has consulted with
is issuing this interim final rule in because there is insufficient time to stakeholders from industry, consumer groups, and
reliance on the same authority and for solicit comment and finalize regulators regarding the interaction between the
the same reasons relied on in adopting FHFA’s program and the servicing rules. As also
the relevant provisions of the 2013 42 78 FR 10695 (Feb. 14, 2013).
noted above, industry stakeholders and consumer
advocates urged the Bureau to take steps to ensure
43 5 U.S.C. 551 et seq., 701 et seq.
that servicers would not be in violation of
40 Public Law 111–203, 124 Stat. 1376 (2010). 44 5 U.S.C. 553(b)(B).
Regulation X if they were to use the streamlined
41 81 FR 72160 (Oct. 19, 2016). 45 5 U.S.C. 553(d)(3). procedures.
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39060 Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations
mortgage servicers can take advantage of forbearances to longer term solutions at mitigation options that permit
these programs. the same time, potentially borrowers to delay repayment of
Thus, prior public comment is overwhelming servicers’ systems and forborne or delinquent amounts accrued
impractical because there is insufficient delaying providing relief to borrowers. during a COVID–19-related forbearance.
time to solicit comment and finalize Indeed, the Bureau understands that As described in the respective section-
amendments before FHFA’s COVID–19 servicers have already begun receiving by-section analyses, new
payment deferral programs take effect abnormally high call volumes, § 1024.41(c)(2)(v)(A) sets forth the
on July 1, 2020. beginning in March 2020.48 minimum specific criteria that the loss
For similar reasons, the Bureau also For these same reasons, the Bureau mitigation option must meet for the new
finds that delaying this rulemaking to also finds that there is good cause for exception to apply, and new
allow for prior public comment would this interim final rule to be effective less § 1024.41(c)(2)(v)(B) offers servicers
be contrary to the public interest, than 30 days after publication, to ensure relief from certain regulatory
because the amendments are necessary that these amendments are in effect by requirements when a borrower accepts a
to avoid the harm to borrowers and to the July 1, 2020 effective date of the loss mitigation option under the new
the housing market that would result if FHFA COVID–19 payment deferral, to exception.
the amendments did not take effect on avoid harm to borrowers and to the As discussed in part II, FHFA, FHA,
July 1, 2020. As discussed above in part housing market. and others have recently announced
II, the Bureau believes that the FHFA loss mitigation options to assist
COVID–19 payment deferral program V. Section-by-Section Analysis borrowers experiencing hardships
and other comparable programs, Section 1024.41 Loss Mitigation related to the COVID–19 emergency in
described more fully in part V, will Procedures repaying amounts that accrued through
benefit both borrowers and servicers 41(c) Evaluation of loss mitigation forbearance or delinquency.51 In
during the current COVID–19 applications general, these programs permit
emergency. These programs will help 41(c)(2) Incomplete loss mitigation borrowers who can resume their normal
eligible borrowers avoid foreclosure by application evaluation periodic payments to move the forborne
quickly entering an agreement regarding 41(c)(2)(i) In general or delinquent payments to the end of
repayment of their forborne payments. Section 1024.41(c)(2)(i) states that, in the mortgage loan and cure any
Absent these streamlined procedures, general, servicers shall not evade the preexisting delinquency. Under those
servicers likely would require borrowers requirement to evaluate a complete loss programs, the deferred amounts must
to submit a complete loss mitigation mitigation application for all loss not accrue interest, servicers may not
application before servicers would mitigation options available to the charge any fee in connection with the
consider them for these programs. This borrower by making an offer based upon loss mitigation option and must waive
could result in significant delays before an incomplete application.49 Currently, various preexisting fees, if applicable,
borrowers can be offered the payment the provision points to two paragraphs and servicers are permitted to offer the
deferral program. In some cases, providing exceptions to the anti-evasion deferral programs to borrowers based on
borrowers might not complete a loss requirement, § 1024.41(c)(2)(ii) and (iii). streamlined application procedures.
mitigation application, which could In this interim final rule, the Bureau is The Bureau believes that the FHFA
prolong their delinquency, increase adding a temporary exception under COVID–19 payment deferral and certain
their costs, and put them at imminent new § 1024.41(c)(2)(v). As described in similar programs would provide
risk of foreclosure. Given the large the section-by-section analysis of benefits both to borrowers and servicers
number of mortgage borrowers currently § 1024.41(c)(2)(v), the new exception during the COVID–19 emergency.
in forbearance or experiencing a applies to certain loss mitigation Through these programs, borrowers who
delinquency related to the COVID–19 options that permit borrowers to delay can resume their normal periodic
emergency, even a small fraction of repayment of forborne or delinquent payments but who cannot afford to
those borrowers experiencing amounts accrued due to the COVID–19 repay the forborne or delinquent
foreclosure could translate to large emergency. The Bureau is amending amounts in the short-term should be
aggregate consequences. For instance, as § 1024.41(c)(2)(i) to include a reference able to eliminate the immediate
noted above, approximately four million to the new exception in paragraph potential risk of losing their homes to
borrowers have entered forbearance (c)(2)(v). foreclosure, resume repaying the
since March 2020. Even if only one- mortgage loan with no delinquency and
tenth of 1 percent of these borrowers 41(c)(2)(v) Certain COVID–19-Related no additional fees or interest, and better
would experience foreclosure absent a Loss Mitigation Options plan how eventually to repay the
deferral, that would translate to In general, § 1024.41 requires forborne or delinquent amount that has
thousands of additional foreclosures. servicers to evaluate a complete loss been deferred.
Thus, avoiding foreclosures may help mitigation application for all loss In addition, the streamlined
prevent significant consequences for the mitigation options available to the application procedures authorized by
housing market and imposing costs both borrower.50 In this interim final rule, the Fannie Mae and Freddie Mac should
on borrowers and servicers. Bureau is adding a temporary exception help ensure that servicers have
In addition, the streamlined to this requirement under new sufficient resources to address requests
procedures permitted for FHFA’s from the unusually large number of
§ 1024.41(c)(2)(v) for certain loss
COVID–19 payment deferral program borrowers who will be seeking
would minimize the burden on servicers assistance from them in the coming
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48 See, Mortgage Bankers Ass’n, MBA Survey
by allowing them to offer the payment Shows Spike in Loans in Forbearance and Servicer months as many CARES Act
deferral program without obtaining and Call Volume, https://www.mba.org/2020-press- forbearances end. And borrowers
processing a complete application from releases/april/mba-survey-shows-spike-in-loans-in-
forbearance-servicer-call-volume. dealing with the social and economic
the borrower. This is especially 49 Small servicers, as defined in Regulation Z, 12 effects of COVID–19 may be less likely
important during the COVID–19 CFR 1026.41, are not subject to this requirement. 12
emergency because servicers will be CFR 1024.30(b)(1). 51 FHFA, supra note 30; HUD Mortgagee Letter
transitioning many borrowers from 50 Id. 2020–06, supra note 30.
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Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations 39061
than they would be under normal payment forbearance program made many borrowers may be facing extended
circumstances to take the steps available to borrowers experiencing a periods of economic uncertainty.
necessary to complete a loss mitigation financial hardship due, directly or The Bureau notes that new
application to receive a full evaluation. indirectly, to the COVID–19 § 1024.41(c)(2)(v)(A)(1) allows for some
This could prolong their delinquencies emergency,54 including a payment flexibility among loss mitigation options
and put them at risk for foreclosure. forbearance program made pursuant to that may qualify for the exception. For
Moreover, by allowing servicers to assist the CARES Act. ‘‘Covered amounts’’ example, although the loss mitigation
borrowers eligible for deferrals more under § 1024.41(c)(2)(v)(A)(1) also options must defer all forborne or
efficiently, servicers will have more includes, without limitation, all other delinquent principal and interest
resources to assist borrowers who are principal and interest payments that are payments under new
unable to resume making their normal due and unpaid by a borrower § 1024.41(c)(2)(v)(A)(1), the rule does
periodic payment, and are therefore experiencing a similar financial not specify how servicers must treat any
ineligible for a FHFA COVID–19 hardship. And ‘‘the term of the mortgage forborne or delinquent escrow amounts.
payment deferral, submit a complete loan’’ under § 1024.41(c)(2)(v)(A)(1) A loss mitigation option would qualify
loss mitigation application for means the loan term according to the for the new exception if it defers
evaluation. obligation between the parties in effect repayment of escrow amounts, in
The Bureau acknowledges that when the borrower is offered the loss addition to principal and interest
borrowers accepting a loss mitigation mitigation option under the new payments, as long as it otherwise
offer under new § 1024.41(c)(2)(v)(A) exception. satisfies new § 1024.41(c)(2)(v)(A).
will not receive protections under New § 1024.41(c)(2)(v)(A)(1) is also
Under new § 1024.41(c)(2)(v)(A)(2), flexible with respect to repayment
§ 1024.41 that are critical in other
any amounts that the borrower may requirements—it does not specify how a
circumstances. As the Bureau explained
delay paying as described in paragraph servicer must structure repayment of the
in the 2013 Mortgage Servicing Final
(c)(v)(2)(A)(1) must not accrue interest; deferred amounts. Requiring repayment
Rule, the general prohibition against
evaluating a borrower for all available the servicer must not charge any fee in either in a lump sum or over a specified
loss mitigation options based on a connection with the loss mitigation period at the end of the loan term
single, complete application ensures option; and the servicer must waive all through additional periodic payments,
that borrowers have a full existing late charges, penalties, stop among other possible approaches,
understanding of their loss mitigation payment fees, or similar charges would satisfy new
options when deciding on a program.52 promptly upon the borrower’s § 1024.41(c)(2)(v)(A)(1). The Bureau
It also makes the loss mitigation acceptance of the loss mitigation option. notes that the provision specifically
application process more efficient by And, under § 1024.41(c)(2)(v)(A)(3), the defines the mortgage loan term for these
eliminating multiple, sequential borrower’s acceptance of the offer must purposes to mean the loan term in effect
evaluations that are sometimes based on end any preexisting delinquency. when the borrower is offered the loss
similar application information,53 with The criteria in § 1024.41(c)(2)(v)(A)(1) mitigation option. As a result, the
the resulting efficiency often saving through (3) provide borrowers with exception under new
borrowers time and resources. safeguards to ensure that borrowers are § 1024.41(c)(2)(v)(A) is available for
Nonetheless, the Bureau believes that sufficiently protected when receiving a eligible loss mitigation options that
the protections set forth in new loss mitigation offer described in would technically extend the term of
§ 1024.41(c)(2)(v)(A) and (B), described § 1024.41(c)(2)(v)(A) without an the loan in accommodating repayment
below, provide sufficient safeguards for evaluation of a complete loss mitigation of forborne or delinquent amounts.
borrowers in the narrow context of the application. First, to qualify for the The Bureau also notes that new
COVID–19 emergency. The Bureau exception, new § 1024.41(c)(2)(v)(A)(1) § 1024.41(c)(2)(v)(A)(1) provides a
solicits comment on all aspects of the requires that any forborne or delinquent standard specific to loans insured by
new exception. principal or interest payments be moved FHA. This is intended to ensure that the
to the end of the loan or, for loans that new exception extends to certain loss
41(c)(2)(v)(A) mitigation options available for FHA
FHA insures, until the mortgage
New § 1024.41(c)(2)(v)(A) permits insurance terminates. This ensures that loans. The Bureau understands that
servicers to offer a loss mitigation borrowers in forbearance programs will FHA permits servicers to offer loss
option based upon an evaluation of an not face a balloon payment immediately mitigation options that would otherwise
incomplete application, as long as the after the forbearance period ends, and it satisfy the criteria of
loss mitigation option meets the criteria will ease the financial strain of having § 1024.41(c)(2)(v)(A) based on an
set forth in § 1024.41(c)(2)(v)(A)(1) to make additional periodic payments to evaluation of an incomplete loss
through (3). Under new catch up on a mortgage loan for mitigation application, and that these
§ 1024.41(c)(2)(v)(A)(1), the loss delinquent borrowers who are not in options would generally provide similar
mitigation option must permit the forbearance. The alternatives could benefits to borrowers and servicers as
borrower to delay paying covered exacerbate borrowers’ hardships and other loss mitigation options offered
amounts until the mortgage loan is lead to foreclosure. As a result of the under § 1024.41(c)(2)(v)(A). In some
refinanced, the mortgaged property is eligibility criteria under new circumstances, these loss mitigation
sold, the term of the mortgage loan ends, § 1024.41(c)(2)(v)(A)(1), many borrowers options would require repayment when
or, for a mortgage insured by FHA, the receiving a loss mitigation option under the mortgage insurance terminates. The
mortgage insurance terminates. New § 1024.41(c)(2)(v)(A) will have years to FHA-specific standard in new
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§ 1024.41(c)(2)(v)(A)(1) defines ‘‘covered plan to address the deferred payments. § 1024.41(c)(2)(v)(A)(1) ensures that
amounts’’ for these purposes to include, This may be particularly important such repayment requirements do not
without limitation, all principal and during the COVID–19 emergency, as exclude these loss mitigation options
interest payments forborne under a from the new exception.
54 New § 1024.41(c)(2)(v)(A) states that ‘‘COVID– Second, for the exception to apply,
52 78 FR at 10828.
19 emergency’’ has the same meaning as under new § 1024.41(c)(2)(v)(A)(2) requires
53 Id. CARES Act section 4022(a)(1). that (1) any amounts that the borrower
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39062 Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations
may delay paying as part of the loss that scenario, the servicer is not mortgage loans in forbearance increased
mitigation agreement do not accrue required to comply with § 1024.41(b)(1) from 0.19 percent to 8.55 percent.58 If
interest, (2) the servicer charges no fee or (2) with regard to any loss mitigation servicers were required to exercise
in connection with the loss mitigation application the borrower submitted reasonable diligence to obtain a
option, and (3) the servicer waives a prior to the servicer’s offer of the loss complete application for each of these
variety of other fees promptly upon the mitigation option described in new borrowers when they exit the
borrower’s acceptance. This § 1024.41(c)(2)(v)(A). forbearance programs, as required under
requirement will prevent the Section 1024.41(b)(1) and (2) § 1024.41(b)(1), or to provide borrower-
application of standards that impose generally sets forth servicers’ obligations specific notifications of the documents
additional economic hardship on upon first receiving a borrower’s loss and information each individual
borrowers, better enabling the borrowers mitigation application. Section applicant must submit to complete the
to address other financial needs during 1024.41(b)(1) generally requires a application, as required under
the COVID–19 emergency. servicer to exercise reasonable diligence § 1024.41(b)(2), it would likely interfere
Third, for the exception to apply, new in obtaining documents and information with their ability to provide effective
§ 1024.41(c)(2)(v)(A)(3) requires that the to complete the loss mitigation and efficient assistance. And borrowers
borrower’s acceptance of the offer end application. Section 1024.41(b)(2) dealing with the social and economic
any preexisting delinquency.55 This generally requires the servicer to review effects of the COVID–19 emergency may
ensures that borrowers who accept a the application to assess completeness be less likely than normal to take the
loss mitigation option under new and provide a written notice within five steps necessary to complete a loss
§ 1024.41(c)(2)(v)(A) do not face a risk of days (excluding legal public holidays, mitigation application to receive a full
imminent foreclosure because, under Saturdays, and Sundays) stating, among evaluation. The Bureau notes that, if a
existing § 1024.41(f)(1)(i), servicers are other things, that the servicer has borrower does wish to pursue a
generally prohibited from making the determined that the loss mitigation complete application and receive the
first notice or filing required under application is either complete or full protections of § 1024.41, they may
applicable law to initiate the foreclosure incomplete; the additional documents do so notwithstanding new
process until a mortgage loan obligation and information the borrower must § 1024.41(c)(2)(v).
is more than 120 days delinquent. submit to make the application The Bureau stresses that servicers are
The Bureau understands that the complete, if applicable; a reasonable required to comply with § 1024.41,
FHFA COVID–19 payment deferral and date by which the borrower should including § 1024.41(b)(1) and (2), if the
FHA’s COVID–19 partial claim, both of submit the additional documents and borrower submits a new application
which are described in part II, satisfy information; and a statement that the after accepting a loss mitigation option
the criteria in new borrower should consider contacting under new § 1024.41(c)(2)(v)(A). In
§ 1024.41(c)(2)(v)(A)(1) through (3). servicers of any other mortgage loans general, servicers are required to comply
These programs have included these secured by the same property to discuss with § 1024.41 if a borrower submits a
criteria to assist borrowers in addressing available loss mitigation options. loss mitigation application, unless the
financial hardships caused by the These protections are part of a servicer has previously complied in
COVID–19 emergency, in part by regulatory regime designed to ensure connection with a complete application
helping to keep their mortgage loans that borrowers generally receive an submitted by the borrower and the
current following the hardship.56 The evaluation for all available loss borrower has been delinquent at all
Bureau notes, however, that the mitigation options based upon a single times since submitting that complete
exception is not limited to those application. As explained in the section- application.59 If a borrower has accepted
programs. Servicers may offer loss by-section analysis of new a loss mitigation option offered under
mitigation options under other § 1024.41(c)(2)(v)(A), this regulatory new § 1024.41(c)(2)(v)(A), neither of
programs, as long as the loss mitigation regime is intended to give borrowers these elements will be present the first
options meet the criteria described in information about their loss mitigation time the borrower submits a later loss
§ 1024.41(c)(2)(v)(A). options when deciding on a program mitigation application. The exception
and make the application process more described under new
41(c)(2)(v)(B) efficient, which can save borrowers time § 1024.41(c)(2)(v)(A) is available only if
New § 1024.41(c)(2)(v)(B) provides and resources. the loss mitigation application is
servicers relief from certain regulatory Notwithstanding these important incomplete and, under new
requirements if a borrower accepts an benefits, however, the Bureau believes § 1024.41(c)(2)(v)(A)(3), the borrower’s
offer made pursuant to new that, in the context of a loss mitigation acceptance of the option ends any
§ 1024.41(c)(2)(v)(A). It states that, in offer under new § 1024.41(c)(2)(v)(A), preexisting delinquency of the
the protections under § 1024.41(b)(1) borrower’s mortgage loan account. As a
55 After the borrower accepts a loss mitigation and (2) introduce undue burden for both result, servicers must comply with the
option under new § 1024.41(c)(2)(v)(A), if a periodic servicers and borrowers attempting to requirements of § 1024.41 for the first
payment sufficient to cover principal, interest, and, navigate the unusual challenges caused later application, which may occur
if applicable, escrow becomes due and unpaid, a
new delinquency would begin. See generally 12
by the COVID–19 emergency. Servicers during the same conversation in which
CFR 1024.31(definition of delinquency). are currently dealing with an the borrower accepts the offer under
56 Press Release, Freddie Mac Announces COVID– abnormally high number of requests for § 1024.41(c)(2)(v)(A).
19 Payment Deferral (May 13, 2020), https:// loss mitigation assistance due to the Additionally, servicers may be
freddiemac.gcs-web.com/news-releases/news- pandemic. According to the Mortgage required to comply with early
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release-details/freddie-mac-announces-covid-19-
payment-deferral?_ga=2.125995917.1203641316. Bankers Association (MBA), between intervention obligations if a borrower’s
1592241885-952089942.1591127071; see also early March and early June 2020, mortgage loan account becomes
Fannie Mae Lender Letter (LL–2020–07) (as approximately four million borrowers delinquent after a loss mitigation option
updated on June 10, 2020), https:// entered into forbearance programs.57
singlefamily.fanniemae.com/media/22916/display;
takes effect under
FHA Mortgagee Letter 2020–06 (Apr. 1, 2020), Over that period, the percentage of all
58 Id.
https://www.hud.gov/sites/dfiles/OCHCO/
documents/20-06hsngml.pdf. 57 Mortgage Bankers Ass’n, supra note 28. 59 12 CFR 1024.41(i).
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Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations 39063
§ 1024.41(c)(2)(v)(A).60 These include VI. Request for Comment In considering the relevant potential
live contact and written notification The Bureau invites comment on this benefits, costs, and impacts of this
obligations that, in part, require interim final rule. The Bureau is interim final rule, the Bureau has used
servicers to inform borrowers of the particularly interested in whether the feedback received to date and its
availability of additional loss mitigation amendments appropriately balance knowledge of consumer financial
options and how the borrowers can providing flexibility to servicers to offer markets. The discussion below of these
apply.61 relief quickly during the COVID–19 potential costs, benefits, and impacts is
Further, the Bureau believes that a emergency with providing important partly qualitative, reflecting the
borrower whose mortgage loan account protections for borrowers engaged in the specialized nature of the amendments.
becomes delinquent following loss mitigation application process, The Bureau requests comment on this
acceptance of a loss mitigation option such as protections from foreclosure. discussion generally, as well as the
under § 1024.41(c)(2)(v)(A) will have The Bureau also seeks comment on submission of data or other information
sufficient notice that other options may whether to require written disclosures that could inform the Bureau’s
be available should the borrower wish for this, or any similar exceptions that consideration of the potential benefits,
to submit another application. In the Bureau may authorize in the future. costs, and impacts of the interim final
general, borrowers who previously The Bureau also seeks comment on rule.
received a forbearance will have whether the Bureau should extend the The interim final rule’s provisions
received at least two written exception established in new generally would decrease burden
notifications earlier in the loss § 1024.41(c)(3)(v) to other post- incurred by industry participants and
mitigation process, as required under forbearance loss mitigation options benefit consumers by providing a
Regulation X: (1) The written notice made available to borrowers affected by limited exception to the general
required under § 1024.41(b)(2) when the other types of disasters and requirement under § 1024.41 for
borrower submits the initial application emergencies. borrowers to submit a complete loss
requesting forbearance, and (2) written mitigation application before servicers
notification of the terms and conditions VII. Effective Date may offer any loss mitigation option
of the forbearance program, required This interim final rule is effective on based on the evaluation of an
under § 1024.41(c)(2)(iii), stating that July 1, 2020. incomplete application. Under the
the servicer offered the program based interim final rule, this limited exception
on evaluation of an incomplete VIII. Dodd-Frank Act Section 1022(b) would be available for loss mitigation
application, that other loss mitigation Analysis options that permit payments forborne
options may be available, and that the In developing this interim final rule, under an eligible forbearance, as well as
borrower still has the option to submit the Bureau has considered the potential payments that are due and unpaid,
a complete application to receive an benefits, costs, and impacts as required related to the COVID–19 emergency to
evaluation for all available options.62 by section 1022(b)(2) of the Dodd-Frank be deferred to the end of the mortgage
Additionally, many borrowers receiving Act.64 In developing this interim final loan. As is described in more detail
an offer under § 1024.41(c)(2)(v)(A) are rule, the Bureau has consulted with below, the Bureau does not believe that
likely to have received early appropriate Federal agencies regarding these changes would restrict consumer
intervention efforts by their servicers, the consistency of this final rule with access to consumer financial products
including the written notice required prudential, market, or systemic and services relative to what would
under Regulation X stating, among other objectives administered by such occur under the baseline.
things, a brief description of examples agencies as required by section Exception to Regulation X anti-
of loss mitigation options that may be 1022(b)(2)(B) of the Dodd-Frank Act.65 evasion provision allowing FHFA
available, as well as application The Bureau considered the benefits, COVID–19 payment deferrals without a
instructions or a statement informing costs, and impacts of this interim final complete loss mitigation application.
the borrower how to obtain more rule against a baseline in which the The interim final rule revises
information about loss mitigation Bureau takes no action. The baseline § 1024.41(c)(2)(i) and adds
options from the servicer.63 under this approach includes the § 1024.41(c)(2)(v) to allow servicers to
In light of these protections, as well CARES Act and the forbearances that offer a payment deferral, or a similar
as the safeguards set forth in new have already been granted under the loss mitigation option in certain
§ 1024.41(c)(2)(v)(A), the Bureau CARES Act and substantially similar circumstances based on the evaluation
believes the requirements of programs.66 of an incomplete loss mitigation
§ 1024.41(b)(1) and (2) would introduce application. In general, for the exception
burden for servicers and borrowers that 64 Specifically, section 1022(b)(2)(A) of the Dodd-
to apply, borrowers must already have
is unnecessary in this limited context. Frank Act (12 U.S.C. 5512(b)(2)(A)) requires the received a forbearance or delinquency
Bureau to consider the potential benefits and costs
of the regulation to consumers and covered persons, related to the COVID–19 emergency, the
60 Small servicers, as defined in Regulation Z, 12
including the potential reduction of access by forborne or delinquent payments must
CFR 1026.41, are not subject to these requirements. consumers to consumer financial products or
12 CFR 1024.30(b)(1).
be deferred to the end of the mortgage
services; the impact of the proposed rule on insured
61 See 12 CFR 1024.39(a) and (b). Also, servicers
depository institutions and insured credit unions
loan without accruing interest and with
are to have policies and procedures in place to with $10 billion or less in total assets as described a variety of fees waived, and the
advise borrowers of all of their loss mitigation in section 1026 of the Dodd-Frank Act (12 U.S.C. borrower’s acceptance must end any
options. 12 CFR 1024.38. During the COVID–19 5516); and the impact on consumers in rural areas.
emergency, one of the loss mitigation options to be 65 Section 1022(b)(2)(B) of the Dodd-Frank Act (12
preexisting delinquency. The Bureau
understands that the FHFA COVID–19
khammond on DSKJM1Z7X2PROD with RULES
presented to borrowers with federally backed U.S.C. 5512(b)(2)(B)) requires that the Bureau
mortgages is their right to CARES Act forbearance. consult with the appropriate prudential regulators payment deferral and FHA’s COVID–19
62 See 12 CFR 1024.41(c)(2)(iii). or other Federal agencies prior to proposing a rule partial claim satisfy the criteria,
63 The early intervention written notice is and during the comment process regarding although the interim final rule is not
generally required no later than the 45th day of a consistency of the proposed rule with prudential,
borrower’s delinquency. 12 CFR 1024.39(b). If a market, or systemic objectives administered by such limited to these programs.
borrower is delinquent during a forbearance agencies.
program, the servicer will likely be required to 66 The Bureau has discretion in any rulemaking respect to potential benefits, costs, and impacts and
provide the written notice to the borrower. to choose an appropriate scope of analysis with an appropriate baseline.
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39064 Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations
As noted above, § 1024.41(c)(2)(i), in choose among available loss mitigation the COVID–19 emergency would
part, prohibits evasion of the options. experience foreclosure but for a
requirement for servicers to evaluate Borrowers will likely benefit from the payment deferral offered under the
borrowers for all available loss new exception to the extent that they exception in this interim final rule.
mitigation options in a single are more able to receive a payment Covered persons will benefit from the
application once they have received a deferral without having to submit a reduction in burden from the
complete application. In the 2013 complete loss mitigation application. In requirement to process complete loss
Mortgage Servicing Final Rule, the most cases, this will result in a mitigation applications for deferrals
Bureau explained its view that reduction in the time necessary to described in § 1024.41(c)(2)(v)(A) that
borrowers would benefit from this gather required documents and are eligible for the exception. Given the
information. In some cases, if borrowers number of loans that are currently in a
requirement, in part because borrowers
would not otherwise complete a loss forbearance due to the COVID–19
would generally be better able to choose
mitigation application and could not emergency, this benefit could be
among available loss mitigation options otherwise obtain relief with respect to substantial. This may be particularly
if they are presented simultaneously. the forborne or delinquent payments, true for loans serviced on behalf of
This interim final rule is unlikely to the interim final rule will enable Fannie Mae and Freddie Mac. As part of
affect this benefit in most cases, given borrowers to obtain the deferral in the the FHFA COVID–19 payment deferral
the narrow scope and particular first place. Without a deferral, borrowers program, Fannie Mae and Freddie Mac
circumstances of the exception. Even if may need to repay the forborne or are requiring servicers of their loans to
a borrower may be interested in and delinquent payments immediately. actively attempt to contact consumers
eligible for another form of loss Borrowers who can do so would use currently in a CARES Act forbearance in
mitigation besides a deferral, receiving a savings, sell assets, or incur additional order to verify eligibility for a deferral.69
deferral would not generally remove the debt. Borrowers who cannot Thus, with or without the interim final
borrower’s right under § 1024.41 to immediately repay the forborne or rule, servicers of loans that are owned,
submit a complete loss mitigation delinquency balances could suffer insured, or guaranteed by Fannie Mae
application and receive an evaluation foreclosure or other negative and Freddie Mac are required to attempt
for all available options after the consequences. Thus, for borrowers who to contact borrowers currently in a
deferral is in place. Moreover, in the obtain a deferral under the new CARES Act forbearance. Without the
specific case of the FHFA COVID–19 exception, the benefit of the provision interim final rule, in each case, the
payment deferral program, in practice, is, at a minimum, the interest on savings servicers would further need to collect
the incomplete applications that may or asset appreciation that need not be documentation needed for a complete
result in deferrals will generally be foregone or the borrowing costs that loss mitigation application, and to
created as a result of servicer outreach need not be incurred. For other process the complete application before
specifically for the purposes of granting borrowers, the benefit of the provision a deferral could be offered. Multiplied
a deferral: Fannie Mae and Freddie Mac is the value of preventing delinquency by millions of such loans in forbearance,
have directed their servicers to fees and foreclosure. these costs could be substantial.
proactively reach out to borrowers The Bureau does not have data Potential specific impacts of the
available to predict what fraction of interim final rule. The Bureau believes
currently under a CARES Act
borrowers currently under a forbearance that a large fraction of depository
forbearance and to grant deferrals to all
or delinquency related to the COVID–19 institutions and credit unions with $10
eligible borrowers.67 Further, to be
emergency would not be able to billion or less in total assets that are
eligible for the exception under new complete a loss mitigation application if engaged in servicing mortgage loans
§ 1024.41(c)(2)(v)(A), a loss mitigation required to complete the application in qualify as ‘‘small servicers’’ for purposes
option must bring the loan current. In order to receive a deferral offer. of the mortgage servicing rules because
most cases, borrowers must be more However, the Bureau believes that in the they service 5,000 or fewer loans, all of
than 120 days delinquent before a present circumstances that percentage which they or an affiliate own or
servicer may make the first notice or could be substantial due to limitations originated. Small servicers are not
filing required under applicable law to in servicer capacity. As discussed subject to the relevant portions of
initiate foreclosure proceedings.68 Thus, above, data from the MBA indicates that Regulation X, § 1024.41, and so are not
if a borrower wishes to pursue another as of June 7, 2020, roughly 8.55 percent affected by the amendments in this
loss mitigation option after accepting of all mortgages were currently in interim final rule.
the deferral, the borrower will still have forbearance, a total of about 4.3 million With respect to servicers that are not
a considerable amount of time to loans, almost all of which entered small servicers as defined in
complete a loss mitigation application forbearance following the passage of the § 1026.41(e)(4), the Bureau believes that
before they would be at risk for CARES Act and thus could exit the consideration of benefits and costs
foreclosure. In summary, in these forbearance around the same time. of covered persons presented above
specific circumstances, the Bureau Processing complete loss mitigation provides a largely accurate analysis of
believes that allowing servicers to grant applications for all these borrowers in a the impacts of the final rule on
deferrals without a complete loss short period of time would likely strain
mitigation application will not many servicers’ resources. This might 69 Press Release, Freddie Mac Announces
materially affect borrowers’ ability to lead to more borrowers who have COVID019 Payment Deferral (May 13, 2020),
incomplete applications that never https://freddiemac.gcs-web.com/news-releases/
khammond on DSKJM1Z7X2PROD with RULES
news-release-details/freddie-mac-announces-covid-
67 The Bureau notes as well that one of the reach completion and who fail to get a 19-payment-deferral?_ga=2.125995917.1203641316.
eligibility criteria for the Fannie Mae and Freddie deferral under the baseline compared to 1592241885-952089942.1591127071; see also
Mac programs is that the borrower states that they what might occur under standard Fannie Mae Lender Letter (LL–2020–07) (as
are able to resume payments under the original market conditions. The Bureau also updated on June 10, 2020), https://
terms of the mortgage. The Bureau expects that singlefamily.fanniemae.com/media/22916/display;
borrowers in those circumstances generally will not does not have data available to predict FHA Mortgagee Letter 2020–06 (Apr. 1, 2020),
require other types of loss mitigation. how many borrowers currently in a https://www.hud.gov/sites/dfiles/OCHCO/
68 12 CFR 1024.41(f)(1)(i). forbearance or a delinquency related to documents/20-06hsngml.pdf.
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Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Rules and Regulations 39065
depository institutions and credit is delegating the authority to mortgage insurance terminates. For
unions with $10 billion or less in total electronically sign this document to purposes of this paragraph
assets that are engaged in servicing Laura Galban, a Bureau Federal Register (c)(2)(v)(A)(1), ‘‘covered amounts’’
mortgage loans. Liaison, for purposes of publication in includes, without limitation, all
The Bureau has no reason to believe the Federal Register. principal and interest payments
that the additional flexibility offered to forborne under a payment forbearance
covered persons by this interim final List of Subjects in 12 CFR Part 1024
program made available to borrowers
rule would differentially affect Banking, Banks, Condominiums, experiencing a financial hardship due,
consumers in rural areas. The Bureau Consumer protection, Credit unions, directly or indirectly, to the COVID–19
requests comment regarding the impact Housing, Insurance, Mortgage servicing, emergency, including a payment
of the amended provisions on Mortgagees, Mortgages, National banks, forbearance program made pursuant to
consumers in rural areas and how those Savings associations, State member the Coronavirus Economic Stabilization
impacts may differ from those banks. Act, section 4022 (15 U.S.C. 9056); it
experienced by consumers generally. also includes, without limitation, all
Authority and Issuance
IX. Regulatory Flexibility Act Analysis other principal and interest payments
For the reasons set forth above, the that are due and unpaid by a borrower
The Regulatory Flexibility Act Bureau amends Regulation X, 12 CFR experiencing financial hardship due,
(RFA) 70 does not apply to a rulemaking part 1024, as set forth below: directly or indirectly, to the COVID–19
where general notice of proposed emergency. For purposes of this
rulemaking is not required.71 As noted PART 1024—REAL ESTATE
paragraph (c)(2)(v)(A)(1), ‘‘COVID–19
previously, the Bureau has determined SETTLEMENT PROCEDURES ACT
emergency’’ has the same meaning as
that it is unnecessary to publish a (REGULATION X)
under the Coronavirus Economic
general notice of proposed rulemaking
■ 1. The authority citation for part 1024
Stabilization Act, section 4022(a)(1) (15
for this interim final rule. Accordingly,
continues to read as follows: U.S.C. 9056(a)(1)). For purposes of this
the RFA’s requirements relating to an
paragraph (c)(2)(v)(A)(1), ‘‘the term of
initial and final regulatory flexibility Authority: 12 U.S.C. 2603–2605, 2607, the mortgage loan’’ means the term of
analysis do not apply. 2609, 2617, 5512, 5532, 5581.
the mortgage loan according to the
X. Paperwork Reduction Act Subpart C—Mortgage Servicing obligation between the parties in effect
The Bureau has determined that the when the borrower is offered the loss
interim final rule does not impose any ■ 2. Section 1024.41 is amended by mitigation option.
new or revise any existing revising paragraph (c)(2)(i) and adding (2) Any amounts that the borrower
recordkeeping, reporting, or disclosure paragraph (c)(2)(v) to read as follows: may delay paying as described in
requirements on covered entities or paragraph (c)(2)(v)(A)(1) of this section
§ 1024.41 Loss mitigation procedures.
members of the public that would be do not accrue interest; the servicer does
collections of information requiring * * * * * not charge any fee in connection with
approval by the Office of Management (c) * * * the loss mitigation option; and the
and Budget under the Paperwork (2) Incomplete loss mitigation servicer waives all existing late charges,
Reduction Act.72 application evaluation—(i) In general. penalties, stop payment fees, or similar
Except as set forth in paragraphs charges promptly upon the borrower’s
XI. Congressional Review Act (c)(2)(ii), (iii), and (v) of this section, a acceptance of the loss mitigation option.
Pursuant to the Congressional Review servicer shall not evade the requirement
Act,73 the Bureau will submit a report to evaluate a complete loss mitigation (3) The borrower’s acceptance of an
containing this rule and other required application for all loss mitigation offer made pursuant to paragraph
information to the U.S. Senate, the U.S. options available to the borrower by (c)(2)(v)(A) of this section ends any pre-
House of Representatives, and the offering a loss mitigation option based existing delinquency on the mortgage
Comptroller General of the United upon an evaluation of any information loan.
States prior to the rule’s published provided by a borrower in connection (B) Once the borrower accepts an offer
effective date. The Office of Information with an incomplete loss mitigation made pursuant to paragraph (c)(2)(v)(A)
and Regulatory Affairs has designated application. of this section, the servicer is not
this rule as a ‘‘major rule’’ as defined by * * * * * required to comply with paragraph
5 U.S.C. 804(2). As discussed in part IV, (v) Certain COVID–19-related loss (b)(1) or (2) of this section with regard
the Bureau finds that there is good cause mitigation options. (A) Notwithstanding to any loss mitigation application the
for the rule to take effect without prior paragraph (c)(2)(i) of this section, a borrower submitted prior to the
notice and comment. Accordingly, this servicer may offer a borrower a loss servicer’s offer of the loss mitigation
rule may take effect at such time as the mitigation option based upon evaluation option described in paragraph
Bureau determines. 5 U.S.C. 808(2). of an incomplete application, provided (c)(2)(v)(A) of this section.
XII. Signing Authority that all of the following criteria are met: * * * * *
(1) The loss mitigation option permits
The Director of the Bureau, having Dated: June 23, 2020.
the borrower to delay paying covered
reviewed and approved this document, Laura Galban,
khammond on DSKJM1Z7X2PROD with RULES
amounts until the mortgage loan is
70 5 U.S.C. 601 et seq. refinanced, the mortgaged property is Federal Register Liaison, Bureau of Consumer
71 5 U.S.C. 603(a), 604(a). sold, the term of the mortgage loan ends, Financial Protection.
72 44 U.S.C. 3501 et seq. or, for a mortgage loan insured by the [FR Doc. 2020–13853 Filed 6–29–20; 8:45 am]
73 5 U.S.C. 801 et seq. Federal Housing Administration, the BILLING CODE 4810–AM–P
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