[Federal Register Volume 82, Number 125 (Friday, June 30, 2017)]
[Rules and Regulations]
[Pages 29713-29714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13799]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Parts 1024 and 1026

[Docket No. CFPB-2017-0016]


Policy Guidance on Supervisory and Enforcement Priorities 
Regarding Early Compliance With the 2016 Amendments to the 2013 
Mortgage Rules Under the Real Estate Settlement Procedures Act 
(Regulation X) and the Truth in Lending Act (Regulation Z)

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Policy guidance.

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SUMMARY: The Consumer Financial Protection Bureau (Bureau) is issuing 
policy guidance on its supervisory and enforcement priorities regarding 
early compliance with the final rule it issued in August 2016 (2016 
Mortgage Servicing Final Rule) amending certain of the Bureau's 
mortgage servicing rules.

DATES: The Bureau released this Policy Guidance on its Web site on June 
27, 2017.

FOR FURTHER INFORMATION CONTACT: Joel L. Singerman, Counsel, or Laura 
A. Johnson, Senior Counsel, Office of Regulations, at 202-435-7700.

SUPPLEMENTARY INFORMATION:

I. Summary

    On August 4, 2016, the Bureau issued the 2016 Mortgage Servicing 
Final Rule clarifying, revising, or amending certain of the Bureau's 
mortgage servicing rules.\1\ Each of the changes will take effect on 
either Thursday, October 19, 2017, or Thursday, April 19, 2018.\2\ The 
Bureau has heard concerns that these midweek effective dates for the 
2016 Mortgage Servicing Final Rule could create operational challenges 
for servicers. The Bureau understands that, for many servicers, the 
Thursday effective dates could afford less than a full day--from the 
close of business overnight on each of the preceding Wednesdays--to 
update and test systems in order to be compliant with the 2016 
amendments. If servicers do not have sufficient time to complete these 
tasks, their systems may be more likely to produce errors, which could 
expose servicers and consumers to risk. Industry participants have 
notified the Bureau that implementing the 2016 Mortgage Servicing Final 
Rule during the weekend, with early compliance beginning on the Monday 
before each of the respective Thursday effective dates, would address 
these concerns.
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    \1\ Amendments to the 2013 Mortgage Rules under the Real Estate 
Settlement Procedures Act (Regulation X) and the Truth in Lending 
Act (Regulation Z), 81 FR 72160 (Oct. 19, 2016).
    \2\ See id. at 72160, 72349-50.
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    The Bureau understands industry's concerns and believes that, in 
the context of the 2016 Mortgage Servicing Final Rule, servicers and 
consumers are likely to benefit if servicers have the weekend 
immediately before each of the effective dates to update and test their 
systems. The Bureau does not, therefore, intend to take supervisory or 
enforcement action for violations of existing Regulation X or 
Regulation Z resulting from a servicer's compliance with the 2016 
Mortgage Servicing Final Rule occurring up to three days before the 
applicable effective dates. For these purposes, ``up to three days 
before the applicable effective dates'' means, for the amendments that 
will take effect on Thursday, October 19, 2017, the period of Monday, 
October 16, through Wednesday, October 18, 2017; and, for the 
amendments that will take effect on Thursday, April 19, 2018, the 
period of Monday, April 16, through Wednesday, April 18, 2018.

[[Page 29714]]

II. Regulatory Requirements

    This Policy Guidance is a non-binding general statement of policy 
articulating considerations relevant to the Bureau's exercise of its 
supervisory and enforcement authority. It is therefore exempt from 
notice and comment rulemaking requirements under the Administrative 
Procedure Act pursuant to 5 U.S.C. 553(b). Because no notice of 
proposed rulemaking is required, the Regulatory Flexibility Act does 
not require an initial or final regulatory flexibility analysis. 5 
U.S.C. 603(a), 604(a). The Bureau has determined that this Policy 
Guidance does not impose any new or revise any existing recordkeeping, 
reporting, or disclosure requirements on covered entities or members of 
the public that would be collections of information requiring OMB 
approval under the Paperwork Reduction Act, 44 U.S.C. 3501, et seq.

    Dated: June 26, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-13799 Filed 6-29-17; 8:45 am]
 BILLING CODE 4810-25-P