NCUA, CFPB Rescind COVID Flexibilities in Mortgage Servicing Disclosures

Source: CUNA

Last week, NCUA, CFPB and other federal financial institution regulatory agencies issued a joint statement stating that the supervisory and enforcement flexibility issued April 3, 2020 is no longer necessary.

That flexibility indicated that the agencies would not take supervisory or enforcement action against mortgage servicers for failing to meet certain timing requirements under Reg X’s mortgage servicing rules as long as the servicers made good faith efforts to provide those required notices or disclosures and took the related actions within a reasonable period of time.

While the flexibility was removed effective immediately, “the agencies will factor in the time it takes to make operational adjustments in connection with this joint statement.”