Today, we’re proposing changes to our Mortgage Servicing Rules, which took effect on January 10, 2014. These rules provide important protections for consumers with mortgages, including:

  • Requiring mortgage servicers (people who manage your mortgage loan account) to provide you with periodic mortgage statements or coupon books that give you important information about your mortgage.
  • Requiring servicers to respond quickly to written inquiries seeking information or requesting that they resolve potential errors about your mortgage.
  • Requiring servicers to reach out to you and send written information describing how to avoid foreclosure if you fall behind on your mortgage payments.
  • Requiring servicers to respond quickly to help you complete your application for loss mitigation options to avoid foreclosure. (Here’s more information about loss mitigation options.)

Since the Mortgage Servicing Rules went into effect, we’ve spent a lot of time talking to consumer advocacy groups, housing counselors, mortgage servicers, and trade associations, to better understand how the rules are working and whether we should make any changes to them. As a result, we’re now proposing some changes to the Mortgage Servicing Rules. The changes are intended to smooth the path for companies to better protect consumers and comply with the CFPB’s rules.

Expanded Protections for Surviving Family Members and Other Homeowners

Some of the most significant proposed changes would expand protections for people who inherit or otherwise receive property from a spouse, parent, or other relative when the mortgage has not been paid off. These homeowners include people who get the property after a loved one dies or in a divorce. They are often called “successors in interest.”

Our proposals regarding these homeowners would:

  • Provide a process for these homeowners to have their interest in the property reviewed and confirmed by the servicer; and
  • Give them the same rights to get information and correct mistakes about the mortgage loan and apply for loss mitigation options as other borrowers have under our rules, once the servicer reviews and confirms their interest in the property.

Loss mitigation applications

We’re proposing several changes to how servicers handle loss mitigation applications (that is, applications for loss mitigation options), including making your mortgage servicer tell you in writing when your loss mitigation application is complete, requiring servicers to gather information from third parties promptly to avoid delays, and clarifying protections for borrowers during servicing transfers and in the face of a foreclosure sale. We are also proposing that servicers would have to give you another opportunity to apply for a loan modification if, for example, you get a loan modification and bring the loan current, but then you fall behind again.

Get involved

Check out the proposed rule and send us your comments. We’ll update this post soon with a link to submit formal comments.

Consumer Financial Protection Bureau

Join to newsletter.

Join our newsletter to keep up on latest consumer news.

Today, we’re releasing our third Snapshot of Complaints Received from Servicemembers, Veterans and their Families. The report details the data and trends from consumer complaints we’ve received from members of the military community since July 2011.

Here are just a few highlights:

  • Debt collection complaints have continued to rise since our last report, and now make up 39 percent of total complaints. It is our largest category of complaints from the military community.
  • Credit reporting remains a top category of concern. 72 percent of these complaints are about incorrect information on credit reports. This remains a significant issue for the military community, one that we highlighted earlier this year.
  • Student loans are another concern. 49 percent of these complaints are about problems dealing with a lender or servicer. In these complaints, we continue to see long-standing trends, such as servicemembers complaining about not being provided their Servicemembers Civil Relief Act rights.

This year our report also highlights our outreach efforts that allowed us to connect with thousands of members of the military community, as well as three of our enforcement actions that recovered millions of dollars for affected consumers, primarily servicemembers, veterans, and their families. These figures represent the positive impact of the work we continue to do on behalf of those who serve.

Problems with account services

Basic account servicing stands out as a significant area of concern for servicemembers. Most consumers can call their financial institution, visit a branch, or connect online to try and get the help they need to maintain their account. Unfortunately, for military personnel and their families, the realities of military life, including deployments, frequent moves, and a high operational tempo, can sometimes make access to those services extremely challenging.

We found that servicemembers were often subject to a variety of account maintenance or penalty fees, as well as account-access restrictions, which were triggered due to aspects of their military service.

These problems raise concerns that financial institutions may not have a true understanding of the servicing needs of their military customers and may lack proper procedures and protections for them. Detailed examples of servicemember experiences can be found in Section II of the report.

Check out the snapshot to learn more.

We’re listening

As always, if you have a problem with a consumer financial product that you can’t resolve on your own; or if you know someone in that situation, please remember that you can submit a complaint online or by calling (855) 411-2372. We make your voice heard.

Consumer Financial Protection Bureau