New mortgage rules are being proposed.
- 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.
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