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Mortgage bor

not be kept in

will change, n

expect. The C

timely inform

TING THE 

er Financial P

s to protect co

om their servi

finalize them 

UND 

tgage service

tgage borrow

dle customer s

closures. 

he vast major

icer. Servicers

ustomer care c

ncial harm, eve

blems in the m

risis, there we

rdkeeping. As 

need help or 

stry’s deficienc

bers of borrow

CFPB is wor

rules under co

erlying servicin

nt years, many

rmation they n

bles worsened

cers. The rule

and quickly fix

rmation they n

RISES 

rrowers deserv

n the dark abo

nor should the

CFPB is consid

mation about c

‘SERVICE’ 

No Surpris

Protection Bur

onsumers from

icers. The CFP

by January 20

ers are respon

wer on behalf

ervice, escrow

rity of cases, 

s have had littl

can be disastro

en foreclosure

mortgage ser

ere problems w

the number o

special attenti

cies have begu

wers. 

rking on rule

onsideration b

ng problems: l

y borrowers ha

needed to help

d because they

s under consid

xed, and to en

need to find al

ve full transpa

out how their p

ey experience b

dering rules th

hanges to thei

BACK IN M

es, No Runa

reau (CFPB) is

m being hit by

PB plans to fo

013. 

nsible for col

f of the owne

w accounts, co

consumers d

le incentive, to

ous for the con

e. 

rvicing mark

with bad pract

of homeowner

ion in paying t

un to inflict si

es to help fix 

by the Bureau 

lack of transpa

ave complaine

p them avoid f

y found it diffi

deration are d

nsure that stru

lternatives to u

arency in deali

payments are 

bill shock ove

hat would pro

ir mortgages s

MORTGAGE 

arounds

s considering 

y costly surpri

ormally propo

llecting paym

r of the loan.

ollections, loan

do not choose

o meet consum

nsumer – it ca

ket are well-k

tices and syste

rs who have r

their mortgage

ignificant harm

the mortgag

are aimed at t

arency and lac

ed that they di

foreclosure. O

icult to get ans

designed to ma

uggling homeo

unnecessary f

ing with their 

applied or wh

er an insurance

ovide consume

so they can av

SERVICING

new mortgage

ises or getting

ose the rules th

ments from th

. They also typ

n modification

e their mortg

mer needs. Th

an lead to cred

known. Even b

emic sloppy 

run into hards

e has skyrocke

m on an increa

ge servicing m

tackling two 

ck of accounta

id not receive 

Other borrowe

swers from th

ake servicer m

owners get the

foreclosures. 

servicer. They

hen their inter

e charge they 

ers with clear 

void costly sur

G

e

g the 

his 

he 

pically 

ns, and 

gage 

his lack 

dit harm, 

before 

hip and 

eted, the 

asing 

market.

ability. In 

the 

ers’ 

heir 

mistakes 

e

y should 

rest rate 

did not 

and 

rprises. 
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servicers wou

have to includ

 A sum

 A bre

 The a

 Rece

 Late 

 For d

altern

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servicers wou

on most adju

disclosure ma

 An e

the c

 A go

 The d

 A list

is un

 Cont

 The a

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the CFPB is c

 In ca

insur

of in

 This 

borro

befor

 Thes

how 

 The s

confi

hly Mortgage

uld be required

de: 

mmary of the 

eakdown of p

amount of and

nt transaction

fee warnings; 

delinquent bor

natives. 

fore Interest 

uld be required

stable-rate mo

any borrowers

xplanation of

hange will tak

od-faith estim

date of future

t of alternative

affordable; 

tact informatio

amount of any

Avoiding Co

arily charge co

considering w

ases where the

rance to lapse,

surance; 

communicatio

ower for the in

re; 

e notices wou

much the forc

servicer must 

irmation that 

e Statements:

d to provide c

mortgage term

ayments by pr

d due date for

n activity, inclu

and, 

rrowers, alerts

Rate Adjusts

d to provide e

ortgages. This 

s currently rec

f how the new 

ke effect; 

mate of the am

 interest-rate a

es that the con

on for housing

y pre-paymen

ostly “Force-P

onsumers for 

ould require t

e servicer think

, the servicer w

on would hav

nsurance -- at 

uld have to pro

ce-placed insu

accept from t

the property i

: The CFPB is

lear monthly s

ms like interes

rincipal, intere

r the next paym

uding itemizat

s and informa

s: The CFPB 

arlier disclosu

requirement w

eive. The new

rate payment

mount of the n

adjustments;

nsumer may p

g counselors; 

nt penalty. 

Placed” Insu

force-placed i

that: 

ks the borrow

would have to

ve to occur twi

least 45 days 

ovide the con

urance would 

the borrower a

is insured; 

s considering a

statements. T

st rate and pri

est, fees, and e

yment; 

tion of fees an

ation about los

is considering

ures before the

would provid

w disclosure w

t would be det

new monthly p

pursue if the n

and 

urance: To ass

insurance, the

wer has allowed

o ask the borro

ice before the

before and ag

sumer with a 

cost; 

any reasonabl

a rule under w

hese statemen

incipal obligat

escrow; 

nd charges; 

ss mitigation 

g a rule under 

e interest rate 

e greater clarit

would include: 

termined and 

payment; 

new monthly p

sure that servi

e proposed rul

d the property

ower to provid

e servicer char

gain at least 15

good-faith est

le form of 

which 

nts would 

tion; 

which 

changes 

ty to the 

when 

payment 

icers do 

le that 

y

de proof 

rges the 

5 days 

timate of 
 The s

from

place

 Wher

prem

even 

insur

Early Inform

a rule under w

delinquent bo

Specifically: 

 Servi

forec

 Outr

 If a b

loan,

NO RUNAR

When mortga

When record

management 

rules that wou

accounts and 

Payments Im

servicers gene

payment is re

 If the

such 

 Once

servic

Records Kep

which service

policies and p

These policie

 Prov

 Minim

servicer would

m the consume

ed insurance p

re the servicer

miums, the serv

if the borrow

rance. 

mation and O

which servicer

orrowers and i

icers would be

closure proces

reach would in

borrower cont

 the servicer w

ROUNDS 

age servicers m

s get lost, or t

practices, the 

uld require co

preventing ru

mmediately C

erally would h

eceived. 

e consumer m

payment in a 

e the amount 

cer would hav

pt Up-to-Dat

ers would be r

procedures de

s and procedu

vide accurate a

mize errors an

d terminate th

er that he has t

premiums; and

r has an escrow

vicer would co

wer is delinque

Options for Av

rs would be re

inform them o

e required to p

ss; 

nclude informi

tacts the servic

would have to

make mistakes

the servicer ha

consumer can

mmon-sense 

unarounds. 

Credited: The

have to credit a

makes a partial 

suspense acco

in the suspens

ve to apply the

te and Access

equired to est

signed to min

ures would: 

and timely disc

nd facilitate pr

he insurance w

the necessary 

d 

w account to 

ontinue the co

ent, rather than

voiding Fore

equired to mak

of their option

provide the bo

ing borrowers

cer because sh

o provide infor

s, too often th

as sloppy reco

n wind up in t

policies and p

e CFPB is con

a consumer’s 

payment, serv

ount. 

se account equ

e amount to th

sible: The CF

tablish reasona

nimize errors a

closures and o

rompt error co

within 15 days 

insurance and

pay the consu

onsumers’ hom

n purchasing f

eclosure: The

ke good-faith 

ns to help avo

orrower with i

s about housin

he is having di

rmation about

he fallout is ha

ord-keeping an

trouble. The C

procedures for

nsidering a rul

account the d

vicers would b

uals one full m

he earliest deli

FPB is conside

able informati

and help with 

other informat

orrection; 

if it receives e

d refund the fo

umer’s insuran

meowner insu

force-placed 

e CFPB is con

efforts to con

oid foreclosure

information a

ng counseling

ifficulty payin

t options. 

arm to the con

nd information

CFPB is consi

r handling con

e under which

day that a mon

be permitted t

monthly paym

inquent paym

ering a rule un

ion-managem

quick correcti

tion for borro

evidence 

forcence 

urance, 

sidering 

ntact 

e. 

about the 

g; and 

ng the 

nsumer. 

nidering 

nsumer 

h

nthly 

to retain 

ment, the 

ment. 

nder 

ment 

ions. 

owers; 
 Main

servic

 Facili

infor

reque

 Ensu

appro

 Ident

consi

Errors Corre

have to addre

acknowledge 

within 30 day

foreclosures o

 Incor

 Paym

 Inacc

 Inacc

 The s

has m

plan.

Direct and O

considering a 

borrowers (or

ongoing acce

 Servi

borro

 Servi

could

anoth

ntain records o

cers; 

itate loss mitig

rmation submi

ests; 

ure reasonable

opriate loss m

tify additional

idered for loss

ected Quickly

ess consumer 

the notificatio

ys. Shorter tim

or payoffs. Ma

rrect calculatio

ments (or noncurate disclosu

curate informa

servicer startin

met his obligat

Ongoing Acc

rule under wh

r borrowers w

ss to staff who

icers would be

ower’s records

icers would be

d evaluate the 

her option to 

of borrower co

gation by acce

itted by or abo

e and timely ac

mitigation perso

l documents a

s mitigation o

y: The CFPB 

concerns abou

on of the erro

meframes woul

any errors wou

ons of amoun

-payments) of

ures; 

ation about ho

ng or continui

tions under a 

ess to Servic

hich servicers 

who are asking

o are dedicate

e required to p

s. 

e required to g

borrower to s

avoid foreclos

ontact, with p

epting, organiz

out borrowers

ccess to such d

onnel; and 

and informatio

ptions. 

is considering

ut possible err

r within five d

ld be imposed

uld fall under 

nts due, credits

f taxes and ins

ow a borrowe

ing foreclosur

trial or perma

er Foreclosu

would be req

g for help to av

ed to servicing

provide these 

give these emp

see if he is elig

sure.

possible except

zing, and man

s in connectio

documents an

on the borrow

g a rule under 

rors. They wo

days and conc

d with respect 

this rule, inclu

s, or payments

surance out of

er can avoid fo

re procedures

anent loan mo

ure Prevention

quired to prov

void delinquen

g troubled bor

employees wi

ployees access

gible for a loan

tion for some

naging docume

on with loss m

nd information

wer must provi

which service

ould have to 

clude an invest

to errors relat

uding: 

s; 

f escrow accou

oreclosure; and

when the bor

odification or o

n Team: The

vide delinquen

ncy) with dire

rrowers. 

ith easy access

s to underwrit

n modification

e small 

ents and 

mitigation 

n by all 

ide to be 

ers would 

tigation 

ting to 

unts; 

d

rrower 

other 

e CFPB is 

nt 

ect, 

s to the 

ters who 

n or