Skip Navigation Links
2013 Press Releases
Register Now for the 2013 NMLS Annual Conference and Training
New SAFE MLO Test with Uniform State Component to Start April 1
Statement on CFPB Mortgage Servicing Transfer Bulletin
State Regulators Support CFPB’s Small Creditor Proposal under Ability to Repay
Missouri Division of Finance Receives Re-Accreditation
Multi-State Mortgage Committee Issues 2012 Annual Report to State Regulators
Three Appointed to FFIEC State Liaison Committee
New SAFE MLO Test with Uniform State Content Now Available
CSBS Proposes CFPB Adopt a Rural Designation Petition Process
State Bank Regulators Support Bill Restricting Online Payday Lending
Chairman of FFIEC State Liaison Committee Announced
Federal Reserve, CSBS To Host Community Banking Research Conference
Federal Reserve’s Foreign Bank Proposal Should Further Contemplate Existing State Supervision
Lawson Appointed to FFIEC State Liaison Committee
CSBS Releases 2012 Annual Report
James M. Cooper Named CSBS Senior Vice President
CSBS Announces 2013-2014 Board & Officers
CSBS and CFPB Sign Supervisory Framework
CSBS Immediate Past Chairman Calls for Balanced Financial Supervision
New CSBS Chairman Outlines Priorities
CSBS Warns Against Costly and Burdensome Accounting Standards
FFIEC Forms Cybersecurity and Critical Infrastructure Working Group
State Regulator Testifies on the Perils of One-Size-Fits-All Supervision
Ten More States to Use Uniform Mortgage Test; 30 States Now Using the Test
Approach to Basel III Respects Industry Diversity
NMLS 2013 State, Federal Mortgage Industry Reports Released
Michael J. Belak Named CSBS Vice President
North Dakota Banking Department Maintains Highest Standards in Bank Supervision
Iowa Division of Banking Receives Bank Re-accreditation
CSBS Supports Appointment of Steve Antonakes as CFPB Deputy Director
Oct. 2-3 Fed/CSBS Community Banking Research Conference To Be Broadcast Live from St. Louis
H. Catherine Woody Promoted to Vice President, Media & Industry Relations
Five More States to Use Uniform Mortgage Test; 35 States Now Using the Test
Federal Reserve and CSBS Release 2013 Community Banking Report
Georgia Department of Banking and Finance Receives Re-accreditation
CSBS Highlights Fed Board’s Evolving Composition, Supervisory Role
Texas Department of Banking Receives Re-Accreditation
CSBS Announces Promotions in its Technology, SRR Divisions
President Should Consider Supervisory Experience When Filling Fed Board
States Look to Coordination and Existing Regulatory Framework to Oversee Virtual Currencies
State Regulators to Discuss 2014 Outlook in On-the-Record Session with Media
Michigan Department of Insurance and Financial Services Office of Banking Receives Re-Accreditation
CSBS White Paper Encourages Federal Policymakers to Right-Size Regulations
Nebraska Department of Banking and Finance Maintains Highest Standards of Bank Supervision
Print-Friendly   |   Email-A-Friend 

 2/20/2013 

Media Release

Conference of State Bank Supervisors
1129 20th Street, NW, 9th Floor, Washington, DC, 20036


American Association of Residential Mortgage Regulators
1025 Thomas Jefferson Street, NW, Suite 500 East, Washington, DC, 20007

 Statement on CFPB Mortgage Servicing Transfer Bulletin   

The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) support the Consumer Financial Protection Bureau’s (CFPB’s) recently released Bulletin 2013-01 entitled “Mortgage Servicing Transfers.”  The bulletin, released on February 11, 2013, is intended to highlight potential risks to consumers related to the transfer of mortgage servicing rights among financial entities and provide the industry clarity on the CFPB’s regulatory expectations related to such transfers.

CSBS and AARMR commend the CFPB for identifying matters through its consumer complaint process to which particular supervisory attention should be directed.  Large-scale servicing transfers represent a timely consumer protection issue.  The CFPB is appropriately focusing on these transactions in an effort to ensure servicers have policies and procedures in place prior to undertaking such transfers.

Additionally, the bulletin provides important clarity to the industry surrounding the CFPB’s expectations for servicing transfers.  Forthcoming standards under the CFPB’s mortgage servicing rule, effective January 10, 2014, are emphasized by this bulletin in an effort to ensure the industry is aware of the rule ahead of its effective date.  The bulletin also outlines aspects of existing laws and regulations applicable to servicing transfers.

In general, state Financial Regulators have jurisdiction over state member and non-member banks, and non-depository institutions.  Similar to the CFPB’s findings, CSBS and AARMR have identified potential for consumer harm when loans are transferred during the loss mitigation process.  In such situations transferee servicers sometimes fail to honor the terms of trial loan modifications provided by predecessor servicers because relevant documents are not transferred to the acquiring servicer, or the acquiring servicer does not take adequate steps to identify mortgages subject to trial loan modifications.

Statutes providing consumer protections to borrowers related to servicing transfers include specific state laws and requirements, as well as the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), and prohibitions on unfair, deceptive, or abusive acts or practices (UDAAPs).  The CFPB Guidance delineates how each federal law applies to servicing transfers.  In order to mitigate possible consumer harm when conducting transfers, CSBS and AARMR strongly encourage state supervised servicers to familiarize themselves with applicable state requirements, the various federal laws, and the CFPB Guidance on servicing.

CSBS and AARMR will seek to update state uniform servicing examination procedures through appropriate Multistate Mortgage Committee (MMC) processes to account for the new CFPB Guidance and bring further consistency to the approach regulators take in this area.

#  #  #
©2014 CSBS   Terms of Use \ Privacy Policy \ Site Map
1129 20th Street, N.W., 9th Floor  \  Washington, DC  \  20036  \  Tel. 202.296.2840  \  Fax. 202.296.1928