The Consumer Financial Protection Bureau (CFPB) is seeking to simplify mortgage servicing rules in order to promote “greater agility” among servicers. CFPB Director Rohit Chopra recently announced plans to update rules that would enable servicers to respond more quickly to changes throughout the mortgage market.

This proposed rule-change is a part of CFPB’s effort to update existing regulations of the mortgage servicing industry. By simplifying compliance rules, the organization hopes to improve consumer service while still protecting vulnerable borrowers. The potential changes include:

• Requiring servicers to provide homeowners with timely and accurate information: CFPB is looking to ensure that borrowers engaged in loan workout negotiations receive the same level of quality, timely, and accurate information communicated by servicers.

• Establishing procedures for notifying homeowners about data inaccuracies: This will allow borrowers access to the correction process in order to address any inaccuracies in the existing information that are used to judge their serviceability and qualification.

• Reducing regulatory burden on servicers by simplifying reporting and disclosure requirements: The CFPB is aiming to reduce paperwork and streamline the way that servicers are governed in order to make the experience quicker and simpler for both servicers and borrowers.

The CFPB has requested input from the public to further their understanding of the mortgage servicing industry and to ensure that proposed changes are in accordance with the customer’s needs. The organization is striving to help mortgage loan company’s across the country while still protecting consumers from predatory practices.

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