The information requested is confidential, proprietary, or privileged? (, Ensure the credit union made payments from the escrow account in a timely manner. A statement that the credit union previously purchased force-placed insurance at the borrowers expense because the credit union did not have evidence that the borrower had hazard insurance coverage? These include the loss mitigation personnel assigned to the borrowers mortgage loan, and appropriate service provider personnel, including service provider personnel responsible for handling foreclosure proceedings? Unless a small servicer, must keep records that document actions taken regarding a borrower's mortgage loan account until one year after a mortgage loan is discharged or servicing of a mortgage loan is transferred by the servicer to a transferee servicer. Provide the borrower with accurate information about available loss mitigation options, including the steps the borrower must take to be evaluated for those options, including how to complete a loss mitigation application or appeal a denial of a loan modification option (if applicable)? Transaction Risk can occur when the credit union does not have adequate internal controls in place and as a result suffers a loss. The credit unions name and mailing address? Did the credit union provide a servicing disclosure statement to the borrower within three days (excluding legal public holidays, Saturdays, and Sundays) after receiving the application? Did the credit union not charge a fee or require a borrower to make a payment as a condition of responding to an information request? A request is overbroad if the borrower requests that the credit union provide an unreasonable volume of documents or information. 2601, et seq.) For all other alleged errors, did the credit union respond within 30 days (excluding legal public holidays, Saturdays, and Sundays) unless, before the expiration of that 30-day period, the credit union extended the time for responding by an additional 15 days (excluding legal public holidays, Saturdays, and Sundays) by notifying the borrower in writing of the extension and the reasons for it? Does the credit union maintain policies and procedures to ensure that the assigned personnel can perform. (opens new page). If the credit union denied the application, did the notice state the specific reason or reasons for the denial, and, if applicable, that the borrower was not evaluated on other criteria? A description of the requested insurance information, how the borrower may provide such information, and (if applicable) that the requested information must be in writing? Remove all force-placed charges and fees from the borrowers account for the period the coverage overlapped? (You will be leaving NCUA.gov and accessing a non-NCUA website. Copies of any information or documents the borrower provided to the credit union regarding written error notices or loss mitigation? Conducting a reasonable search for the requested information and providing the borrower with a written notice telling the borrower that the credit union has determined that the requested information is not available, the reason for the credit unions determination, and contact information for further assistance? On August 4, 2016, the CFPB issued a final rule (2016 Mortgage Servicing Rule) amending certain mortgage servicing provisions in Regulation X and Regulation Z issued by the CFPB in 2013. (, Determine if the credit union sent a written notice to the borrower within 45 days after borrower became delinquent. Ensure that if the credit union received a complete application, they provided acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving the loss mitigation application. The NCUA proceedings for conservatorship or receivership of the servicer. 1024.1 Designation. | Consumer Financial Protection Bureau Did the credit union made payments from the escrow account in a timely manner? Regulation X Real Estate Settlement Procedures Act This resource is not an official legal edition of the Code of Federal Regulations or the Federal Register, and it does not replace the official versions of those publications. (See 1024.14 (opens new window) If applicable, how long the borrower has to accept or reject this loss mitigation option or a previously offered loss mitigation option? (, Determine if the annual escrow statement contains the following. In cases when the right to delivery is waived or the transaction is exempt, is the statement mailed as soon as possible after settlement? Amount of monthly mortgage payment and portion that were placed in escrow; Amount of past years monthly mortgage payment and portion that went into escrow; Total amount paid into escrow during the past computation year; Total amount paid out of escrow account during same period for taxes, insurance, and other charges; Balance in the escrow account at the end of the period; How a surplus, shortage, or deficiency is to be paid/handled; and. (You will be leaving NCUA.gov and accessing a non-NCUA website. Regulation X is a US Federal Reserve Bank regulation that governs the are provided to borrower. Does the notice by transferor and transferee include the following information as contained in. (. Conducting a reasonable investigation and providing the borrower with a written notice stating that the credit union has determined that no error occurred, the reasons for its determination, the borrowers right to request documents the credit union relied on in reaching its determination and how to do so, and contact information for further assistance? Secondary market transactions (not including table funded transactions). When the credit union receives hazard insurance information but does not receive evidence of continuous coverage, did the reminder notice include the following information: A statement requesting that the borrower provide hazard insurance information for the borrowers property and that identifies the property by its physical address? A statement that the credit union has received the hazard insurance information that the borrower provided? The credit union is joining the foreclosure action of a subordinate lienholder? BBC News (. (opens new page).) (, Ensure the credit union did not charge a fee or require a borrower to make a payment as a condition of responding to an information request. If the credit union received mortgage servicing rights for a loan, did it notify the borrower within 15 days after the transfer occurred? [Not applicable to small servicers.] For any mortgage loan, does the credit union keep accurate records that document actions regarding the mortgage loan account (which includes any mortgage loan that has been transferred or paid in full)? Did the credit union refrain from improperly conducting a foreclosure sale or moving for foreclosure judgment before one of the following: The credit union notified the borrower that it had denied the loss mitigation application and, if an appeal was available, either the appeal period expired or the appeal was denied? If the credit union conducts the settlement, determine whether: The borrower, upon request, is allowed to inspect the HUD-1 or HUD-1A at least one business day prior to settlement; (, The HUD-1 or HUD-1A is provided to the borrower and seller at or before settlement (except where the borrower has waived the right to delivery and in the case of exempt transactions); and (, In cases where the right to delivery is waived or the transaction is exempt, the HUD- 1/1A is mailed as soon as practicable after settlement. States whether the application was complete or incomplete; Identifies the additional information needed to complete the application; Identifies a reasonable date by which the borrower must submit the additional information; and. Gives the borrower a reasonable date by which to complete the application. In the case of open-end credit plan (HELOCs) subject to Regulation Z, a lender should provide brochure entitled When Your Home is on the Line: What You Should Know About Home Equity Lines of Credit instead of the booklet. (. If the credit union did not respond, ensure they determined that the above responses were not required because: The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination; or (, Determine if the supporting documentation the credit union relied up to determine that no error occurred was provided to the borrower within 15 days (excluding legal public holidays, Saturdays, and Sundays) of the borrowers request. Copies of any information or documents the borrower provided to the credit union regarding written error notices or loss mitigation. On February 7, 2023, the Bureau issued an Advisory Opinion to address the applicability of RESPA section 8 to operators of certain digital mortgage comparison-shopping platforms. [Not applicable to small servicers.] Does the credit union maintain policies and procedures for transferring information during servicing transfers? Provide borrowers with accurate and timely information and documents in response to borrower requests for information about the borrowers mortgage loan? A statement requesting that the borrower provide hazard insurance information for the borrowers property and that identifies the property by its physical address; The credit unions phone number for borrower questions; A statement advising that the borrower review additional information provided in the same mailing (if applicable); A statement that it is the second and final notice; The annual cost of force-placed insurance, or if unknown, a reasonable estimate; A statement that the credit union has received the hazard insurance information that the borrower provided; A request that the borrower provide the missing information; and. [Not applicable to small servicers.] Does the credit union understand the required loss mitigation procedures apply only to loans secured by the borrowers principal residence and not to reverse mortgage loans? In 2013, the CFPB issued several final rules amending Regulation X. [Not applicable to small servicers.] Does the credit union maintain policies and procedures that ensure that it has access to and provides timely and accurate information? Regulation Z is also known as the Truth in Lending Act. For open-end lines of credit (home equity plans) covered under Regulation Z, no GFE need be given if disclosures required by 1026.40 (opens new window) Determine if the initial notice was in the correct form. Compliance Risk can occur when the credit union does not implement controls to comply with RESPA. Title X imposes several requirements. The term Regulation X can refer to two different regulations in the United States. It requires lenders, mortgage brokers, or servicers of exit link policies. Regulations created by administrative agencies, such as the Food and Drug Administration. The final rules implemented certain provisions of Title XIV of the Dodd-Frank Act and included major and technical changes to the existing regulations. Statutory law-including laws passed by Congress, state legislatures, or local governing bodies 3. Comment for 1024.33 - Mortgage Servicing Transfers, Comment for 1024.34 - Timely Escrow Payments and Treatment of Escrow Balances, Comment for 1024.35 - Error Resolution Procedures, Comment for 1024.36 - Requests for Information, Comment for 1024.37 - Force-Placed Insurance. exit link policies. The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. sets out detailed requirements for establishing and maintaining escrow accounts, including acceptable accounting methods that may be used. Provide the borrower with accurate information about available loss mitigation options, including the steps the borrower must take to be evaluated for those options, including how to complete a loss mitigation application or appeal a denial of a loan modification option (if applicable); Provide the borrower with accurate information about the status of any loss mitigation application submitted; Provide the borrower with accurate information about the circumstances when the credit union may refer the account to foreclosure; Provide the borrower with accurate information about loss mitigation deadlines; Timely retrieve a complete record of the borrowers payment history and all written information the borrower has provided to the credit union (or the credit unions predecessors) regarding a loss mitigation application, and provide these documents to other persons required to evaluate the borrower for available loss mitigation options; and. In response to a complete loss mitigation application, properly evaluate the borrower for all eligible loss mitigation options according to any requirements established by the owner or assignee of the mortgage loan, even if those requirements are beyond the requirements of. That the borrower was not evaluated on other criteria? Resources to help industry participants understand, implement, and comply with the Real Estate Settlement Procedures Act (RESPA) and Regulation X. Learn about HHS' top regulations. The credit union notified the borrower of his or her ineligibility for any loss mitigation option and, if an appeal was available, the appeal period expired or the appeal was denied; The borrower rejected all the offered loss mitigation options; or. (, Determine that the disclosure states whether the loan may be assigned, sold, or transferred to any person at any time. (opens new page).) Full text of Real Estate Settlement Procedures Act (Regulation X) can be found here. [Not applicable to small servicers.] Does the credit union maintain policies and procedures that inform borrowers about procedures for submitting written error notices and written information requests? ). Regulation S-X is broken down into different topics outlining Determine through discussions with credit union management and reviews of credit files whether the Special Information Booklet called Your Home Loan Toolkit, if required, is provided within three business days after the credit union or broker receives a written application for a loan. Web 1024.2 is part of 12 CFR Part 1024 (Regulation X). exit link policies. (, Ensure the credit union did not provide any adverse information about a payment to a consumer reporting agency within 60 days of receiving an error notice on the payment. Provide the loss mitigation personnel assigned to the borrowers mortgage loan pursuant to . Did the credit union properly acknowledged the error notice by providing written acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving an error notice? Did the credit union provide the borrower with the address in each of the following communications: Any periodic statement or coupon book required under, Did the credit union give the same address for receiving information requests? Did the credit union have a reasonable basis to believe that the borrower did not comply with the mortgage loan contracts requirement to maintain hazard insurance? (, Review escrow accounts for paid off mortgages to determine whether the credit union returned amounts remaining in escrow within 20 days (excluding legal public holidays, Saturdays, and Sundays) after the borrower paid the mortgage loan in full. In determining time periods for required actions, does the credit union consider a complete loss application received when there is no foreclosure sale scheduled to be more than 90 days before a foreclosure sale? Either the CFPBs or HUDs website to access homeownership counselors or counseling organizations lists and HUDs toll-free number to access homeownership counselors or counseling organizations? On December 31, 2013, the CFPB published final rules implementing Sections 1098(2) and 1100A(5) of the Dodd-Frank Act, which direct the CFPB to publish a single, integrated disclosure for mortgage transactions which includes mortgage disclosure requirements under the Truth in Lending Act (TILA) and sections 4 and 5 of RESPA. (, When the credit union owns the property being sold, determine whether it requires that title insurance be purchased from a particular company. 1024.10 One-day advance inspection of HUD-1 or HUD-1A settlement statement; delivery; recordkeeping. Review a sample of loan files that include GFEs to determine the following: Whether the credit union followed GFE application requirements. Fees, salaries, or other consideration as described in Regulation X. Number of days before settlement the interest rate must be locked, if applicable; Left hand column on trade-off table completed for loan in the GFE. Strategic Risk can occur when the board of directors does not perform due diligence in reviewing policies and procedures, and existing and prospective products and services for compliance with RESPA. WebThe Committee on Government Reform may have not more than seven subcommittees. Making the first notice of filing for any judicial or non-judicial foreclosure process; Moving for foreclosure judgment or an order of sale; or, If an application was facially complete, but later the servicer requested additional needed information, ensure the credit union treated the borrowers application as complete for purposes of , Review denied loss mitigation applications. WebThe Gramm-Leach-Bliley Act requires financial institutions companies that offer consumers financial products or services like loans, financial or investment advice, or insurance to explain their information-sharing practices to their customers and to Homeowners Protection Act (HPA or PMI Cancellation Act) 1024.14 Prohibition against kickbacks and unearned fees. If there is an accidental or technical error on the HUD-1 or HUD-1A, does the credit union provide a revised HUD-1 or HUD-1A to the borrower within 30 calendar days after settlement? Regulation X protects consumers when they apply for and have mortgage loans. If mortgage broker provides GFE, lender need not, but lender is bound by disclosures on GFE provided by broker. Determine if management is aware of the prohibition against unearned fees where a charge for settlement services is divided between two or more parties. The information requested is not directly related to the borrowers mortgage loan account? Explore guides to help you plan for big financial goals, Subpart A - General Provisions 1024.11024.5, Subpart B - Mortgage Settlement and Escrow Accounts 1024.61024.20, Subpart C - Mortgage Servicing 1024.301024.41, Supplement I to Part 1024 - Official Interpretations. This disclosure must be provided on a separate sheet of paper. The credit union notified the borrower that it had denied the loss mitigation application and, if an appeal was available, either the appeal period expired or the appeal was denied; Determine if the credit union refrains from making the first foreclosure notice or filing before the borrower is more than 120 days delinquent, unless the foreclosure is based on a borrowers violation of a due-on-sale clause or the servicer is joining a subordinate lienholders foreclosure action. We encourage you to read the NCUA's We encourage you to read the NCUA's The credit union determined that it was not required to respond and provided the borrower written notice with the reason for its determination not to respond to the request to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination? Determine if the renewal notice was in the correct form. exit link policies. Does the lender provide the mortgage servicing disclosure statement within three business days after receiving the application? Charges to be paid from the escrow account during the first 12 months? This part, known as Regulation X, is issued by the Bureau of Consumer Financial Protection to implement the Real Estate Settlement Procedures Act of 1974, Allow periodic reviews of service providers? (Prohibition Against Kickbacks and unearned Fees). Regulations and official interpretations. (, If the credit union offered a loss mitigation option and received the complete application fewer than 90 days before a foreclosure sale but more than 37 days before the sale, ensure the credit union provided the borrower with at least 7 days to accept or reject any offered loss mitigation options after the servicer notified the borrower about the offer. Was written acknowledgement provided to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) of the credit union receiving the information request? open-end lines of credit (home equity plans) covered by the Truth in Lending Act and Regulation Z. If the credit union gives a specific address to receive notice of errors, did it notify the borrower in writing that the borrower must use that address? Studies of both workers and consumers have linked some cleaning products to increased risk for asthma and other health problems. Do written loan policies regarding federally related mortgage loans comply with RESPA? (, Review the Good Faith Estimate to determine if it appears exactly as set forth in. Note: If a borrower uses a mortgage broker, the mortgage broker must provide the booklet and the lender need not do so. Was the credit unions electronic method for submitting error noticesif usedin addition to, and not instead of, any process for receiving error notices by mail? Conduct escrow account analysis at closing and end of computation year to determine payments into escrow. Did the credit union comply with the following time frames: The credit union responded within 10 days (excluding legal public holidays, Saturdays, and Sundays) to borrower request for the identity of or contact information for the owner or assignee of a mortgage loan? Cleaning Supplies: Secret Ingredients, Hidden Hazards Contained the date of the reminder notice and all of the other information provided in the initial notice; Advised that it is a second and final notice; and. Federal Trade Commission Is this done in a way that ensures its accuracy and that allows the transferee to comply with the terms of the mortgage loan and applicable law, including any information about the status of any loss mitigation agreements or discussions with the borrower and any analysis performed regarding potential recovery from non-performing mortgage loans? (. Keep copy of completed HUD-1 or HUD-1A and related documents (until transfer to new owner or loan or new servicer). WebTitle X, also known as the Residential Lead-Based Paint Reduction Act of 1992, was an act aimed to protect families, and especially young children, from exposure to lead from paint, dust, and soil. (, Does the credit union obtain the list of home ownership counseling agencies from the CFPBs or HUDs website and is the list obtained no more than 30 days prior to the time the list was provided to the applicant? Case law and common law doctrines Secondary sources of law Does the GFE contain the following elements: Number of days before settlement the interest rate must be locked, if applicable? WebAgencies create regulations (also known as "rules") under the authority of Congress to help government carry out public policy. Is the borrower, upon request, allowed to inspect the HUD-1 or HUD-1A at least one day before settlement? If the credit union retains its interest in the mortgage and/or services it, is the HUD-1 or HUD-1A form kept for five years? For any borrower who timely appealed a denial of an available loan modification option, did the credit union provide a notice to the borrower within 30 days stating: Whether the credit union will offer the borrower a loss mitigation option based on the appeal? ( 1024.35(e)(3)(B)) (opens new window) Any website the credit union maintains for servicing the loan? If electronic disclosures are provided, determine whether the credit union has policies and procedures to provide electronic delivery in accordance with the Electronic Signatures in Global and National Commerce Act (ESIGN). If the credit union provided a revised GFE to the applicant due to changed circumstances, determine whether the credit union followed regulatory requirements for issuing a revised GFE due to changed circumstances. Identify a reasonable date by which the borrower must submit the additional information? (opens new page).). Making the first foreclosure notice or filing? Determine whether the credit union has policies and procedures that address the following: The information that will be collected from applicants in connection with issuing a GFE, and what information will be relied on to issue a GFE; Provision of a revised GFE in the event of changed circumstances; Provision of a revised GFE for transactions involving new home purchases; To cure a tolerance violation by reimbursing the borrower the amount by which the tolerance was exceeded within 30 calendar days from date of settlement; and. Creditors originating these types of mortgages must continue to use, as applicable, the Good Faith Estimate, HUD-1 Settlement Statement, and Truth in Lending disclosures. Does the credit union provide applicants a list of home ownership counseling agencies within three business days of receiving an application? If the credit union maintains escrow accounts in connection with a federally related mortgage loan, complete the following procedures. Administrative Law Congress has amended RESPA significantly Does the annual escrow statement itemize: Current mortgage payment and portion going to escrow? Although the specific provisions of these laws vary among states, they all require the registration of securities offerings, and registration of brokers and brokerage firms. Regulation X - Explained - The Business Professor, LLC Please review the implementation and guidance materials available on our website, including regulations and official interpretation, before submitting a question about the Bureaus rules or regulations. If the credit union did not respond to the borrowers request for information, determine whether the above responses were not required because: The credit union provided the borrower with the information requested and contact information (including telephone number) for further assistance within five days (excluding legal public holidays, Saturdays, and Sundays); and (, The credit union determined that it was not required to respond and provided the borrower written notice with the reason for its determination not to respond to the request to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination (, If the information requested is the identity or contact information of the owner or assignee of a mortgage loan, determine whether the credit union complied by identifying the person on whose behalf the credit union receives payments. (, Determine whether HUD-1 and HUD-1A forms are retained for five years. 12 CFR Part 1024 - Real Estate Settlement Procedures (, Determine if the credit union maintains policies and procedures to ensure they do each of the following: (. (, Ensure the credit union did not charge a fee or require the borrower to make any payments as a condition to responding to an error notice. To extend the acceptance period, if within 14 days, did the credit union allow the borrower to appeal a denial of any loan modification option? Conduct an internal review at least once a year to test compliance with the regulation and conformity of a credit unions practices with its policies and procedures. When the credit union owns the property being sold, does it ensure that it does not require the borrower to purchase title insurance for a particular company as a condition of the sale? Ensure they are aware that these only apply to loans secured by the borrowers principal residence and not to reverse mortgage loans. Provide the borrower with information about submitting a written error notice or written request for information? Does the credit union perform an escrow analysis at the creation of the escrow account? (, If the credit union offered a loss mitigation option and received the complete application at least 90 days before a foreclosure sale, determine if they provided the borrower with at least 14 days to accept or reject any offered loan modification option after the servicer notified the borrower about the offer.