The Legal League 100 conducted a webinar Thursday afternoon to discuss changes in CFPB’s servicing rules. Three panelists joined in the discussion: Michelle Garcia Gilbert of Gilbert Garcia Group; Rose Marie Brook of Fabrizio & Brook, P.C.; and Stephen Hladik of Hladik, Onorato & Federman, LLP.
The webinar stressed the changes that CFPB has made to successor in interest rules, which were first put in place in 2013. A person is a successor in interest if the borrower transfers ownership by: transfering by will, inheritance, or operation of law; transfer to relative after borrower’s death; or transfer to spouse or child.
The rule determines proper order of operations and due diligence that servicers are required to take in order to remain in compliance when determining who is a successor in interest. First, servicers are required to respond to written requests if they include the name of the borrower and information to identify the loan. That response should include a clear description of documents the servicer requires to verify the identity of the successor in interest with return contact information. Servicers are not required to actively seek out successors in interest. These rules go into effect April 2018.
Expert panelists also spoke on changes to federal bankruptcy rules and RESPA/FDCPA. The live contact and early intervention portion of the changes go into effect on October 19, 2017, and the requirement for servicers to provide periodic statements to borrowers in delinquency.
“Legal League 100 remains committed to education on mortgage industry developments and best practices ensuring that servicers and legal practitioners are equipped to serve homeowners,” said Derek Templeton, Executive Director of Legal League 100. “We are grateful to today's distinguished panel for offering their collective expertise.”
Interested parties can find the presentation notes from the webinar here.
Legal League 100’s next event will be the Legal League 100 Servicer Summit, held on September 20, 2017 at the Five Star Conference and Expo in Dallas Texas. The event will take place from 7:30 a.m. to 3 p.m.