Here are the proposed rules:
- Monthly mortgage statements
Servicers would be required to provide clear billing statements including information on the loan, amount due, and application of past payments. - Warnings before interest rate adjustments
Servicers would be required to provide consumers with a new notice 6 to 7 months before the first rate adjustment, as well as earlier and improved notices before rate adjustments causing an increase in a consumer’s mortgage payments. - Force-placed insurance
Servicers can only charge borrowers for buying insurance on the property when they have a reasonable basis to believe that the borrowers have let their own insurance lapse and have given borrowers two notices estimating the cost of the “force-placed insurance.” - Early outreach for delinquent borrowers
Getting a delinquent borrower back on track requires early intervention and information about options available. - Prompt crediting of payments
Payments must be applied as of the day they are received, and the handling of partial payments is clarified. - Accurate information management
Servicers must have reasonable policies to ensure that when borrowers provide documents and information the servicers can find and use them. - Error resolution and information requests
Mistakes happen, but they need to get fixed. Servicers must address borrower concerns about possible errors within certain timeframes and provide the information they request. - Direct and ongoing access to servicer personnel
Delinquent borrowers will be able to contact the right people at their servicer to get information and take steps to avoid foreclosure. - Evaluation for alternatives to foreclosure
Servicers would be required to appropriately review borrower applications for loan modifications or other options to avoid foreclosure.
Make your voice heard - Comment by October 9:
For Regulation Z, click here
For Regulation X, click here
