ABA Statement on CFPB’s Mortgage Servicing Rule

Jan 18 - “ABA believes all borrowers deserve high-quality mortgage servicing. Thousands of banks currently provide first-rate customer service that complies with the spirit of the mortgage servicing rules issued by the CFPB today," said  Frank Keating, American Bankers Association president and CEO, in a statement released recently regarding the Consumer Financial Protection Bureau's mortgage servicing rule.

“We commend the CFPB for working to reduce bank regulatory burden associated with certain procedural requirements contained in the rules. Gratefully, this rule retains flexibility for some existing servicing practices that have served borrowers and relationship-based lenders well, and provides helpful exemptions for institutions servicing 5,000 or fewer loans.

“ABA recognizes the need for regulatory reform of certain mortgage servicing practices and agrees that consumers need to be well informed about the terms of their mortgage loans. We’re concerned that some of the CFPB’s new requirements are not expressly mandated by Dodd-Frank and could lead to further consolidation in the servicing industry, increasing the cost of credit and harming borrowers.

“ABA will continue to study today's rulemaking and its impact on the cost of mortgage servicing. We will also continue to work with the Bureau to ensure the availability and affordability of mortgage-related products and services for borrowers nationwide.”