The NCUA on Tuesday issued an alert outlining changes that may impact credit unions that service mortgages regulated by Regulation X.
The CFPB’s interim final rule, effective July 1, 2020, amended parts of Regulation X and added a temporary exception to subpart C of the regulation regarding certain COVID-19-related loss mitigation options.
Under the rule, a loan mortgage servicer may offer a borrower a loss mitigation option based on its evaluation of limited information collected from a borrower, if certain criteria are met, the alert states. The new exception permits credit unions and their affiliates to align their loss mitigation programs with the criteria of the FHFA COVID-19 payment deferral or other comparable programs.
The alert urges credit unions to read the provisions of the rule and Regulation X to determine the effect on their operations. Additional resources can be found on both the NCUA website and the CFPB website.