Dan West featured in the USFN Winter Report – February 2018
Get Ready for CFPB Periodic Statements
Servicers, sharpen your pencils: now is the time to gather resources for development and deployment with regard to bankruptcy periodic statements. While compliance with the Consumer Financial Protection Bureau (CFPB or Bureau) mandate is not required until April 10, 2018, the reality is that the rollout should occur well-before that deadline. There are still many unanswered questions and further CFPB clarification is unlikely. The industry will have to rely on logic and reason, as well as prior holdings to formulate statements and implement policies and procedures that will (hopefully) ensure the highest likelihood of consistent compliance.
A small contingent of mortgage creditor representatives met with the CFPB last October, with a goal of obtaining clarity on significant statement requirements. Several questions were presented to the CFPB in advance of the meeting. While the Bureau representatives were careful not to engage in any prohibited ex parte communication, they were also prepared and willing to provide guidance by pointing to alternative Rule provisions. They also indicated that the Bureau would further consider possible unintended negative consequences of the Rules, and whether additional commentary was warranted. Below is a summary of the questions and responses from that meeting.