Gain a better understanding of mortgage servicing rules that apply to small servicers.
Since the financial crisis of the late 2000s, mortgage servicers and the broader mortgage industry have been subjected to intense scrutiny in the form of regulatory enforcement and litigation. In response to issues discovered throughout the crisis, the federal government overhauled the mortgage servicing regulatory landscape when the Consumer Financial Protection Bureau (CFPB) enacted significant amendments to Regulations X and Z. The mortgage servicing rules cover numerous topics and strictly regulate nearly all aspects of a mortgage servicer’s operations. These rules can be onerous, even for the largest companies. Recognizing this, the CFPB incorporated an exception to some of the more burdensome rules for entities that are considered to be small servicers. However, small servicers aren’t exempt from all of the mortgage servicing rules. This presentation will help mortgage servicers understand who qualifies as a small servicer and will explain in detail the mortgage servicing rules that apply to small servicers. Even though smaller entities may have less risk exposure than the largest servicers, complying with the law is of the utmost importance to minimize and avoid potential litigation and enforcement risk.
Learning Objectives
- You will be able to discuss what it means to be a small servicer for the purposes of the mortgage servicing rules.
- You will be able to describe the various mortgage servicing rule obligations that apply to small servicers.
- You will be able to explain the history of the mortgage servicing rules, why there is a small servicer exemption for many provisions, and the importance of complying with the mortgage servicing rules.
- You will be able to identify which provisions of the mortgage servicing rules apply to small servicers and which do not.
Agenda
Welcome and Introduction
Background
- History of Mortgage Servicing Rules
- Overview of Mortgage Servicing Rules
- Importance of Compliance
Definition of Small Servicer
- Who Is Considered a Small Servicer?
- What Provisions Contain Exemptions for Small Servicers?
Rules Applicable to Small Servicers
- Servicing Transfers
- Error Resolution and Information Requests
- Force-Placed Insurance
- Loss Mitigation/Dual Tracking
- ARM Notices
- Payment Processing/Payoff Statements
- Ownership Transfer Notices
- Escrow Cancellation Notice
Conclusion
- Compliance Considerations
- Takeaways
Questions and Answers
Speakers
Jonathan R. Kolodziej,
Bradley- Partner, CFPB team co-leader
- Practice focuses on regulatory compliance, examination, and enforcement matters
- Represents all types of consumer financial service companies, with a large focus on mortgage servicing
- Adjunct professor, University of Alabama School of Law, Real Property Security and teacher of Regulatory Compliance and Current Issues during the Mortgage Bankers Association’s School of Mortgage Banking I, II, and III courses
- Regular speaker at various industry conferences, including the Mortgage Bankers Association’s Regulatory Compliance, Servicing Solutions, and Legal Issues conferences
- Helped develop the Mortgage Bankers Association’s course material for the Certified Regulatory Compliance Manager (CRCM) designation and also reviews and updates most of the Mortgage Bankers Association’s education content regarding mortgage laws and regulations
- Author of Interplay of the Cares Act’s Forbearance Framework and Regulation X’s Loss Mitigation Rules, The Conference on Consumer Finance Law Quarterly Report, Volume 75; co-author of Chapter 11: Debt Collection Practices in the publication of Consumer Finance Law: Understanding Consumer Financial Services Regulations, American Bar Association; co-author of the American Banker’s Association’s Reference Guide for Mortgage Servicing
- Member of the Mortgage Bankers Association and the Alabama Bar Association
- J.D. degree, University of Alabama School of Law; B.A. degree, Villanova University
Who Should Attend
This live webinar is designed for attorneys, presidents, vice presidents, loan officers, loan department personnel, branch managers, credit and collections managers, controllers, accountants, compliance officers, and auditors.
