The Consumer Financial Protection Bureau ("CFPB") issued an interim final rule to adjust the timing requirements for a servicer to provide an early intervention notice to a borrower that has invoked "cease communication" rights under the Fair Debt Collection Practices.
The interim final rule is effective October 19, 2017. The interim final rule amends a provision of the Regulation X mortgage servicing rules issued in 2016 that required mortgage servicers, in certain situations, to provide an early intervention notice on exactly the 180th day after a previous notice had been issued to a delinquent borrower. The interim final rule addresses the concern that compliance would be made difficult if the 180th day fell on a weekend or a holiday. As a result, the CFPB amended the requirement to allow for servicers to provide the required notice within ten days of the 180-day threshold to "alleviate any unintended challenges and facilitate timely provision of written early intervention notices."
The final rule was published in the Federal Register. Comments must be received on or before November 15, 2017.
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