In a regulatory alert to credit unions on Monday, the NCUA stated that the CFPB has published a final rule temporarily amending certain mortgage servicing requirements under Regulation X to assist borrowers affected by the COVID-19 emergency.
The rule becomes effective on Aug. 31, 2021. Among the key provisions, the rule:
- defines COVID-19-related hardship (amends section 1024.31);
- modifies early intervention requirements (amends section 1024.39);
- permits modifications based on incomplete application (amends section 1024.41); and
- establishes temporary COVID-19 loss mitigation procedural safeguards (amends section 1024.41).
The alert recommends that credit unions review the rule in its entirety to ensure compliance with the temporary amendments. More information about the requirements and what it means for credit unions can be found on the New York’s State of Mind blog, written by Henry Meier, the New York Credit Union Association’s senior VP/general counsel.