Private lenders run the periodic-statement framework against the residential-mortgage servicing cycle on the Regulation Z framework under 12 CFR §1026.41. Seven recurring mistakes run against the lender’s borrower-statement framework on the compliance cycle. Each runs the lender into a notice-of-error framework, a notice-of-information-request framework, or a CFPB-supervisory-examination framework. This article walks the seven mistakes and runs the corrective framework against each.

1. The amount-due framework runs against the wrong number

The amount-due framework runs the principal-and-interest framework, the escrow framework, the late-fee-after-grace-period framework, and the fees framework against the borrower-payment framework. The lender that runs the amount-due framework on a mismatched framework against the note-and-deed-of-trust framework runs the borrower-payment framework into a notice-of-error cycle on the framework. The corrective runs the amount-due framework against the note framework, the deed-of-trust framework, and the escrow-analysis framework on each statement cycle.

2. No delinquency-information box on the delinquent-borrower framework

The delinquency-information framework runs the periodic-statement framework against the delinquent-borrower framework on the Regulation Z framework. The lender that runs the periodic statement against a delinquent borrower without the delinquency-information box framework runs a Regulation Z framework on a thin discipline against the delinquent-borrower framework. The corrective runs the delinquency-information framework against the date-of-delinquency framework, the account-history framework, the risks-of-non-payment framework, the loss-mitigation-contact framework, and the housing-counselor framework on each delinquent-borrower statement.

3. The transaction-activity framework runs incomplete

The transaction-activity framework runs the periodic-statement framework against the payment-received framework, the fee-assessed framework, and the escrow-disbursement framework on each billing cycle. The lender that runs the transaction-activity framework on a thin discipline against the billing cycle runs the periodic-statement framework on a Regulation Z framework against the audit cycle. The corrective runs the transaction-activity framework against each payment, each fee, and each escrow disbursement on the periodic-statement framework.

4. The partial-payment framework runs no disclosure

The partial-payment-information framework runs the periodic-statement framework against the suspense-account framework on the partial-payment cycle. The lender that runs the partial-payment framework on the suspense-account framework without the partial-payment-information framework runs the Regulation Z framework on a thin discipline. The corrective runs the partial-payment-information framework against the borrower-payment framework on each partial-payment cycle.

5. The contact-information framework runs against the wrong toll-free number

The contact-information framework runs the servicer-identification framework, the toll-free-number framework, the email-address framework, and the mailing-address framework against the periodic-statement framework. The lender that runs the contact-information framework on a non-toll-free number framework, a non-monitored email framework, or a stale-address framework runs the borrower-contact framework into a thin discipline. The corrective runs the contact-information framework against a toll-free-number framework, a monitored-email framework, and a current-mailing-address framework on each periodic statement.

6. The ESIGN consent framework runs on no documentation

The Electronic Signatures in Global and National Commerce Act framework runs the electronic-delivery framework against the periodic-statement framework. The lender that runs the electronic-delivery framework on no documented borrower-consent framework runs the ESIGN framework on a thin discipline. The corrective runs the borrower-consent framework on the affirmative-consent framework, the hardware-and-software framework, and the right-to-withdraw-consent framework against the electronic-delivery framework.

7. The coupon-book framework runs without the Regulation Z exception conditions

The coupon-book exception framework runs the periodic-statement framework against a fixed-rate residential-mortgage framework on the coupon-book delivery framework. The lender that runs the coupon-book framework against an adjustable-rate framework or a delinquent-borrower framework runs the Regulation Z framework on a thin discipline. The corrective runs the coupon-book framework against the fixed-rate framework and runs the periodic-statement framework against the adjustable-rate or delinquent-borrower framework on the standard.

Related Topics

• Borrower Statements That Pass Compliance Review
• Identity Verification at Loan Boarding
• Five Wire Fraud Defenses for Private Lenders
• Impound and Escrow Accounts for Private Lenders
• Mortgage Fund Subservicing Done Right

This article is educational and does not constitute legal or regulatory advice. The borrower-statement framework runs against the Regulation Z framework under 12 CFR §1026.41. The framework runs against the small-servicer-exemption framework on the CFPB framework. The framework runs against the business-purpose-loan-exemption framework under 12 CFR §1026.3(a) on the recurring compliance cycle. Consult qualified legal counsel on the specific borrower-statement framework against any private-lending operation.

Sources

• 12 CFR §1026.41 — Periodic Statements for Residential Mortgage Loans. Electronic Code of Federal Regulations.
• 12 CFR §1026.3 — Exempt Transactions. Electronic Code of Federal Regulations.
• Consumer Financial Protection Bureau — Mortgage Servicing Rules. Consumer Financial Protection Bureau.
• Electronic Signatures in Global and National Commerce Act. U.S. Congress.
• CFPB Supervisory Highlights — Mortgage Servicing. Consumer Financial Protection Bureau.