Amendments to the 2013 Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z), 24519-24521 [2016-09695]

Download as PDF 24519 Proposed Rules Federal Register Vol. 81, No. 80 Tuesday, April 26, 2016 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 [Docket No. CFPB–2016–0016] RIN 3170–AA49 Amendments to the 2013 Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) Bureau of Consumer Financial Protection. ACTION: Reopening of comment period with request for public comment. AGENCY: The Bureau of Consumer Financial Protection (Bureau) is reopening the comment period for a specific aspect of the proposed rule published by the Bureau in the Federal Register on December 15, 2014 (79 FR 74176). On December 15, 2014, the Bureau published for notice and comment proposed amendments to certain mortgage servicing provisions in Regulation X and Regulation Z. Among other things, the proposed rule: Addressed requiring servicers to provide modified periodic statements under Regulation Z to consumers who have filed for bankruptcy, subject to certain exceptions; included related proposed sample periodic statement forms; and indicated that the Bureau intended to conduct consumer testing of the proposed sample forms and would publish and seek comment on a report summarizing the methods and results of such testing prior to finalizing any sample forms. The original comment period to the proposed rule closed on March 16, 2015. The Bureau conducted consumer testing of sample periodic statement forms for consumers in bankruptcy after the close of the original comment period. The Bureau now reopens the comment period until May 26, 2016 to seek comment specifically on the report summarizing consumer testing of sample periodic statement forms for consumers in bankruptcy. mstockstill on DSK4VPTVN1PROD with PROPOSAL SUMMARY: VerDate Sep<11>2014 17:13 Apr 25, 2016 Jkt 238001 The comment period for the proposed rule published on December 15, 2014 (79 FR 74176) is reopened. Comments must be received on or before May 26, 2016. ADDRESSES: You may submit comments, identified by Docket No. CFPB–2016– 0016 or RIN 3170–AA49, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: FederalRegisterComments@ cfpb.gov. Include Docket No. CFPB– 2016–0016 or RIN 3170–AA49 in the subject line of the email. • Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. • Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002. Instructions: All submissions should include the agency name and docket number or Regulatory Information Number (RIN) for this rulemaking. Because paper mail in the Washington, DC area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. In general, all comments received will be posted without change to https://www.regulations.gov. In addition, comments will be available for public inspection and copying at 1275 First Street NE., Washington, DC 20002, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by telephoning (202) 435–7275. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or Social Security numbers, should not be included. Comments will not be edited to remove any identifying or contact information. FOR FURTHER INFORMATION CONTACT: Dania L. Ayoubi or David H. Hixson, Counsels, or Laura A. Johnson, Senior Counsel; Office of Regulations, at 202– 435–7700. SUPPLEMENTARY INFORMATION: DATES: I. Background In January 2013, the Bureau issued several final rules concerning mortgage PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 markets in the United States (2013 Title XIV Final Rules), pursuant to the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Public Law 111–203, 124 Stat. 1376 (2010).1 Two of these rules were (1) the Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X) (2013 RESPA Servicing Final Rule); 2 and (2) the Mortgage Servicing Rules Under the Truth in Lending Act (Regulation Z) (2013 TILA Servicing Final Rule).3 These two rules are referred to collectively as the 2013 Mortgage Servicing Final Rules. The Bureau clarified and revised those rules through notice and comment rulemaking during the summer and fall of 2013 in the (1) Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) (July 2013 Mortgage Final Rule) 4 and (2) Amendments to the 2013 Mortgage Rules under the Equal Credit Opportunity Act (Regulation B), Real Estate Settlement Procedures Act (Regulation X), and the Truth in Lending Act (Regulation Z) (September 1 Specifically, on January 10, 2013, the Bureau issued Escrow Requirements Under the Truth in Lending Act (Regulation Z), 78 FR 4725 (Jan. 22, 2013) (2013 Escrows Final Rule), High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (Regulation X), 78 FR 6855 (Jan. 31, 2013) (2013 HOEPA Final Rule), and Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z), 78 FR 6407 (Jan. 30, 2013) (January 2013 ATR Final Rule). The Bureau concurrently issued a proposal to amend the January 2013 ATR Final Rule, which was finalized on May 29, 2013. See 78 FR 6621 (Jan. 30, 2013) (January 2013 ATR Proposal) and 78 FR 35429 (June 12, 2013) (May 2013 ATR Final Rule). On January 17, 2013, the Bureau issued the Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules, 78 FR 10901 (Feb. 14, 2013) (Regulation Z) and 78 FR 10695 (Feb. 14, 2013) (Regulation X) (2013 Mortgage Servicing Final Rules). On January 18, 2013, the Bureau issued the Disclosure and Delivery Requirements for Copies of Appraisals and Other Written Valuations Under the Equal Credit Opportunity Act (Regulation B), 78 FR 7215 (Jan. 31, 2013) (2013 ECOA Valuations Final Rule) and, jointly with other agencies, issued Appraisals for Higher-Priced Mortgage Loans (Regulation Z), 78 FR 10367 (Feb. 13, 2013) (2013 Interagency Appraisals Final Rule). On January 20, 2013, the Bureau issued the Loan Originator Compensation Requirements under the Truth in Lending Act (Regulation Z), 78 FR 11279 (Feb. 15, 2013) (2013 Loan Originator Final Rule). 2 78 FR 10695 (Feb. 14, 2013). 3 78 FR 10901 (Feb. 14, 2013). 4 78 FR 44685 (July 24, 2013). E:\FR\FM\26APP1.SGM 26APP1 24520 Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Proposed Rules 2013 Mortgage Final Rule).5 In October 2013, the Bureau issued clarified compliance requirements in relation to successors in interest, early intervention requirements, bankruptcy law, and the Fair Debt Collection Practices Act (FDCPA),6 through an Interim Final Rule (IFR) 7 and a contemporaneous compliance bulletin (October 2013 Servicing Bulletin).8 Among other things, the IFR provisionally exempted servicers from the periodic statement requirement for a mortgage loan while the consumer is a debtor in bankruptcy and indicated that the Bureau would continue to examine the issue and might reinstate the requirement to provide a consumer in bankruptcy with a periodic statement.9 In October 2014, the Bureau added an alternative definition of small servicer in the Amendments to the 2013 Mortgage Rules under the Truth in Lending Act (Regulation Z).10 The purpose of each of these updates was to address important questions raised by industry, consumer advocacy groups, and other stakeholders. The 2013 Mortgage Servicing Final Rules, as amended in 2013 and 2014, are referred to herein as the Mortgage Servicing Rules. On December 15, 2014, the Bureau published for notice and comment a proposed rule amending Regulation X and Regulation Z.11 Among other things, the proposed amendments to § 1026.41 of Regulation Z would require servicers to provide modified periodic statements to consumers who have filed for bankruptcy, subject to certain exceptions, with content varying depending on whether the consumer is a debtor in a Chapter 7 or Chapter 11 bankruptcy case, or in a Chapter 12 or Chapter 13 bankruptcy case, respectively.12 The Bureau also proposed related sample periodic statement forms,13 and indicated that it would conduct consumer testing of the proposed sample forms. As the Bureau 5 78 FR 60381 (Oct. 1, 2013). U.S.C. 1692 et seq. 7 78 FR 62993 (Oct. 23, 2013). 8 Consumer Fin. Prot. Bureau, CFPB Bulletin 2013–12, Implementation Guidance for Certain Mortgage Servicing Rules (Oct. 15, 2013), available at https://files.consumerfinance.gov/f/201310_cfpb_ mortgage-servicing_bulletin.pdf. 9 78 FR 62993, 63000–01 (Oct. 23, 2013). The Bureau received comments in response to the IFR that it took into account in developing the proposed rule and sample forms for consumers in bankruptcy. 10 79 FR 65300, 65304 (Nov. 3, 2014). 11 79 FR 74176 (Dec. 15, 2014). 12 The discussion of the relevant portions of the proposed rule pertaining to the bankruptcy periodic statements are available at 79 FR 74176, 74256–66 (Dec. 15, 2014). 13 79 FR 74176, 74267 and 74300–02 (Dec. 15, 2014). mstockstill on DSK4VPTVN1PROD with PROPOSAL 6 15 VerDate Sep<11>2014 17:13 Apr 25, 2016 Jkt 238001 explained in the proposed rule, ‘‘[p]rior to finalizing any such sample forms, the Bureau will publish and seek comment on a report summarizing the methods and results of the consumer testing.’’ 14 The comment period for the proposed rule closed on March 16, 2015. In response to the proposed rule, the Bureau received over 100 comment letters during the comment period from numerous commenters, including servicers, consumer groups, trade associations, other government entities, and individual consumers. In particular, the Bureau received a number of comments addressing the merits of the proposed provisions on the bankruptcy period statements. After the close of the comment period, interested parties submitted to the Bureau additional oral ex parte presentations and written ex parte comments on the proposed rule.15 In addition, the Bureau has conducted ex parte outreach to servicers to gain insight into their mortgage processing systems and capabilities to implement proposed changes to the servicing of loans in bankruptcy.16 After the close of the comment period, as discussed in more detail below, the Bureau conducted consumer testing of sample periodic statement forms that servicers could use for consumers in bankruptcy to comply with the related proposed amendments to § 1026.41. II. Discussion and Request for Comment Following publication of the proposed rule, the Bureau engaged Fors Marsh Group (FMG), a research and consulting firm that specializes in designing disclosures and consumer testing, to conduct one-on-one cognitive interviews of consumers to test the Bureau’s proposed sample periodic statement forms for consumers who have filed for bankruptcy, with content varying depending on whether the consumer is a debtor in a Chapter 7 or Chapter 11 bankruptcy case, or in a Chapter 12 or Chapter 13 bankruptcy case, respectively. As described in detail in the report summarizing the testing,17 the Bureau and FMG worked closely to 14 79 FR 74175, 74266 (Dec. 15, 2014). Consumer Fin. Prot. Bureau, CFPB Bulletin 11–3, CFPB Policy on Ex Parte Presentations in Rulemaking Proceedings (Aug. 16, 2011), available at https://files.consumerfinance.gov/f/2011/08/ Bulletin_20110819_ExPartePresentations RulemakingProceedings.pdf. Materials pertaining to these presentations are filed in the record and are publicly available at https://www.regulations.gov. 16 Summaries of the Bureau’s outreach are filed in the record and are publicly available at https:// www.regulations.gov. 17 Fors Marsh Group, Testing of Bankruptcy Periodic Statement Forms for Mortgage Servicing (Feb. 2016), available at https://www.consumer finance.gov/reports (report on consumer testing submitted to the CFPB). 15 See PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 develop and test the Bureau’s proposed sample modified periodic statement forms and various revisions thereto. Between May 2015 and August 2015, FMG conducted three rounds of one-onone cognitive interviews regarding the forms with a total of 51 participants in Arlington, Virginia, Fort Lauderdale, Florida, and Chicago, Illinois. Efforts were made to recruit a significant number of participants who had filed for bankruptcy, who had a mortgage (preferably when they filed for bankruptcy), and who had trouble making mortgage payments in the last two years. During the interviews, participants were shown sample modified periodic statements. In general, participants who had filed for Chapter 7 bankruptcy reviewed the statements tailored to borrowers who are debtors in a Chapter 7 or Chapter 11 bankruptcy case, while participants who had filed for Chapter 13 bankruptcy reviewed the statements tailored to borrowers who are debtors in a Chapter 12 or Chapter 13 bankruptcy case. Participants were asked specific questions to test their understanding of the information presented in the sample statements, how easily they could find various pieces of information presented in the sample statements, as well as to learn about how they would use the information presented in the sample statements. The Bureau and FMG worked closely to develop revisions to all of the forms between rounds to address any usability or comprehension issues that became apparent, as well as to respond further to public comments the Bureau received on the proposed rule. As noted above, the Bureau indicated in its proposed rule that it would conduct consumer testing of sample periodic statement forms for consumers in bankruptcy and publish a report prior to finalizing any such sample forms. The Bureau conducted the consumer testing after the close of the original comment period and is now issuing this notice to reopen the comment period in order to publish and seek public comment specifically on the report summarizing the methods and results of the testing. The Bureau is not soliciting comment on other aspects of the proposed rule, including the merits of the proposal to require periodic statements for consumers in bankruptcy under certain circumstances. As noted above, the Bureau has already received a number of comments on the merits of the proposal, and any further such comments will be considered outside of the scope of this request for public comment. Therefore, the Bureau encourages commenters to limit their E:\FR\FM\26APP1.SGM 26APP1 Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / Proposed Rules submissions accordingly to the report, its findings, and conclusions. Dated : April 21 , 2016. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2016–09695 Filed 4–25–16; 8:45 am] BILLING CODE 4810–AM–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG–2016–0131] RIN 1625–AA00 Safety Zone, Shallowbag Bay; Manteo, NC Coast Guard, DHS. Notice of proposed rulemaking. AGENCY: ACTION: The Coast Guard proposes to establish a temporary safety zone on the navigable waters of Shallowbag Bay, in Manteo, NC. This proposed safety zone would restrict vessel movement from a portion of Shallowbag Bay River during the Manteo July 4th Celebration Fireworks display. This action is necessary for the safety of life and property on the surrounding navigable waters during the fireworks display. The Coast Guard invites comments on this proposed rule. DATES: Comments and related material must be received by the Coast Guard on or before May 11, 2016. ADDRESSES: You may submit comments identified by docket number USCG– 2016–0131 using the Federal eRulemaking Portal at https:// www.regulations.gov. See the ‘‘Public Participation and Request for Comments’’ portion of the SUPPLEMENTARY INFORMATION section for further instructions on submitting comments. SUMMARY: If you have questions about this proposed rulemaking, call or email LCDR Derek J. Burrill, Coast Guard Sector North Carolina, Coast Guard; telephone (910) 772–2230, email Derek.J.Burrill@ uscg.mil. mstockstill on DSK4VPTVN1PROD with PROPOSAL FOR FURTHER INFORMATION CONTACT: II. Background, Purpose, and Legal Basis On July 4, 2016 fireworks will be launched from a barge located in Shallowbag Bay in Manteo, North Carolina as part of the Manteo July 4th Celebration. The Captain of the Port North Carolina (COTP) proposes to establish a temporary safety zone on specified waters of Shallowbag Bay within a 200 yard radius of a barge anchor. This safety zone would be effective and enforced from 9:00 p.m. to 10:30 p.m. on July 4, 2016 with a rain date of July 5, 2016. Access to the safety zone would be restricted during the specified date and time. The purpose of this temporary safety zone is to ensure the safety of vessels and spectators from hazards associated with the fireworks display, such as accidental discharge of fireworks, dangerous projectiles, and falling hot embers or other debris. The legal basis for the rule is the Coast Guard’s authority to establish safety zones: 33 U.S.C. 1231; 46 U.S.C. Chapter 701, 3306, 3703; 50 U.S.C. 191, 195; 33 CFR 1.05–1, 6.04–1, 6.04–6, 160.5; Public Law 107–295, 116 Stat. 2064; Department of Homeland Security Delegation No. 0170.1. III. Discussion of Proposed Rule The COTP proposes to establish a safety zone from 9:00 p.m. to 10:30 p.m. on July 4, 2016 with a rain date being July 5, 2016. The safety zone would cover all navigable waters within 200 yards of barge anchor. The duration of the zone is intended to ensure the safety of vessels and these navigable waters before, during, and after the scheduled 9:30 to 10:00 p.m. fireworks display. All persons and vessels would need to comply with the instructions of the COTP or his designated representative. Except for vessels authorized by the COTP or his designated representative, no person or vessel would be allowed to enter or remain in the safety zone. Notification of the temporary safety zone would be provided to the public via marine information broadcasts. I. Table of Abbreviations IV. Regulatory Analyses We developed this proposed rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders and we discuss First Amendment rights of protestors. CFR Code of Federal Regulations DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code A. Regulatory Planning and Review Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 17:13 Apr 25, 2016 Jkt 238001 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 24521 necessary, to select regulatory approaches that maximize net benefits. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This NPRM has not been designated a ‘‘significant regulatory action,’’ under Executive Order 12866. Accordingly, the NPRM has not been reviewed by the Office of Management and Budget. This regulatory action determination is based on the size, location, duration, and time-of-day of the safety zone. Vessel traffic would be able to safely transit around this safety zone which would impact a small designated area of Shallowbag Bay, Manteo, North Carolina for less than 1 hour. Moreover, the Coast Guard would issue a Broadcast Notice to Mariners via VHF– FM marine channel 16 about the zone, and the rule would allow vessels to seek permission to enter the zone. B. Impact on Small Entities The Regulatory Flexibility Act of 1980, 5 U.S.C. 601–612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term ‘‘small entities’’ comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not have a significant economic impact on a substantial number of small entities. While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section IV.A above this proposed rule would not have a significant economic impact on any vessel owner or operator. If you think that your business, organization, or governmental jurisdiction qualifies as a small entity and that this rule would have a significant economic impact on it, please submit a comment (see ADDRESSES) explaining why you think it qualifies and how and to what degree this rule would economically affect it. Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104–121), we want to assist small entities in understanding this proposed rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the FOR FURTHER INFORMATION E:\FR\FM\26APP1.SGM 26APP1

Agencies

[Federal Register Volume 81, Number 80 (Tuesday, April 26, 2016)]
[Proposed Rules]
[Pages 24519-24521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09695]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 81, No. 80 / Tuesday, April 26, 2016 / 
Proposed Rules

[[Page 24519]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1026

[Docket No. CFPB-2016-0016]
RIN 3170-AA49


Amendments to the 2013 Mortgage Servicing 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: Reopening of comment period with request for public comment.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
reopening the comment period for a specific aspect of the proposed rule 
published by the Bureau in the Federal Register on December 15, 2014 
(79 FR 74176). On December 15, 2014, the Bureau published for notice 
and comment proposed amendments to certain mortgage servicing 
provisions in Regulation X and Regulation Z. Among other things, the 
proposed rule: Addressed requiring servicers to provide modified 
periodic statements under Regulation Z to consumers who have filed for 
bankruptcy, subject to certain exceptions; included related proposed 
sample periodic statement forms; and indicated that the Bureau intended 
to conduct consumer testing of the proposed sample forms and would 
publish and seek comment on a report summarizing the methods and 
results of such testing prior to finalizing any sample forms. The 
original comment period to the proposed rule closed on March 16, 2015. 
The Bureau conducted consumer testing of sample periodic statement 
forms for consumers in bankruptcy after the close of the original 
comment period. The Bureau now reopens the comment period until May 26, 
2016 to seek comment specifically on the report summarizing consumer 
testing of sample periodic statement forms for consumers in bankruptcy.

DATES: The comment period for the proposed rule published on December 
15, 2014 (79 FR 74176) is reopened. Comments must be received on or 
before May 26, 2016.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2016-
0016 or RIN 3170-AA49, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: FederalRegisterComments@cfpb.gov. Include Docket 
No. CFPB-2016-0016 or RIN 3170-AA49 in the subject line of the email.
     Mail: Monica Jackson, Office of the Executive Secretary, 
Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 
20552.
     Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1275 First 
Street NE., Washington, DC 20002. Instructions: All submissions should 
include the agency name and docket number or Regulatory Information 
Number (RIN) for this rulemaking. Because paper mail in the Washington, 
DC area and at the Bureau is subject to delay, commenters are 
encouraged to submit comments electronically. In general, all comments 
received will be posted without change to https://www.regulations.gov. 
In addition, comments will be available for public inspection and 
copying at 1275 First Street NE., Washington, DC 20002, on official 
business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You 
can make an appointment to inspect the documents by telephoning (202) 
435-7275.
    All comments, including attachments and other supporting materials, 
will become part of the public record and subject to public disclosure. 
Sensitive personal information, such as account numbers or Social 
Security numbers, should not be included. Comments will not be edited 
to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Dania L. Ayoubi or David H. Hixson, 
Counsels, or Laura A. Johnson, Senior Counsel; Office of Regulations, 
at 202-435-7700.

SUPPLEMENTARY INFORMATION:

I. Background

    In January 2013, the Bureau issued several final rules concerning 
mortgage markets in the United States (2013 Title XIV Final Rules), 
pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection 
Act (Dodd-Frank Act), Public Law 111-203, 124 Stat. 1376 (2010).\1\ Two 
of these rules were (1) the Mortgage Servicing Rules Under the Real 
Estate Settlement Procedures Act (Regulation X) (2013 RESPA Servicing 
Final Rule); \2\ and (2) the Mortgage Servicing Rules Under the Truth 
in Lending Act (Regulation Z) (2013 TILA Servicing Final Rule).\3\ 
These two rules are referred to collectively as the 2013 Mortgage 
Servicing Final Rules.
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    \1\ Specifically, on January 10, 2013, the Bureau issued Escrow 
Requirements Under the Truth in Lending Act (Regulation Z), 78 FR 
4725 (Jan. 22, 2013) (2013 Escrows Final Rule), High-Cost Mortgage 
and Homeownership Counseling Amendments to the Truth in Lending Act 
(Regulation Z) and Homeownership Counseling Amendments to the Real 
Estate Settlement Procedures Act (Regulation X), 78 FR 6855 (Jan. 
31, 2013) (2013 HOEPA Final Rule), and Ability to Repay and 
Qualified Mortgage Standards Under the Truth in Lending Act 
(Regulation Z), 78 FR 6407 (Jan. 30, 2013) (January 2013 ATR Final 
Rule). The Bureau concurrently issued a proposal to amend the 
January 2013 ATR Final Rule, which was finalized on May 29, 2013. 
See 78 FR 6621 (Jan. 30, 2013) (January 2013 ATR Proposal) and 78 FR 
35429 (June 12, 2013) (May 2013 ATR Final Rule). On January 17, 
2013, the Bureau issued the Real Estate Settlement Procedures Act 
(Regulation X) and Truth in Lending Act (Regulation Z) Mortgage 
Servicing Final Rules, 78 FR 10901 (Feb. 14, 2013) (Regulation Z) 
and 78 FR 10695 (Feb. 14, 2013) (Regulation X) (2013 Mortgage 
Servicing Final Rules). On January 18, 2013, the Bureau issued the 
Disclosure and Delivery Requirements for Copies of Appraisals and 
Other Written Valuations Under the Equal Credit Opportunity Act 
(Regulation B), 78 FR 7215 (Jan. 31, 2013) (2013 ECOA Valuations 
Final Rule) and, jointly with other agencies, issued Appraisals for 
Higher-Priced Mortgage Loans (Regulation Z), 78 FR 10367 (Feb. 13, 
2013) (2013 Interagency Appraisals Final Rule). On January 20, 2013, 
the Bureau issued the Loan Originator Compensation Requirements 
under the Truth in Lending Act (Regulation Z), 78 FR 11279 (Feb. 15, 
2013) (2013 Loan Originator Final Rule).
    \2\ 78 FR 10695 (Feb. 14, 2013).
    \3\ 78 FR 10901 (Feb. 14, 2013).
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    The Bureau clarified and revised those rules through notice and 
comment rulemaking during the summer and fall of 2013 in the (1) 
Amendments to the 2013 Mortgage Rules under the Real Estate Settlement 
Procedures Act (Regulation X) and the Truth in Lending Act (Regulation 
Z) (July 2013 Mortgage Final Rule) \4\ and (2) Amendments to the 2013 
Mortgage Rules under the Equal Credit Opportunity Act (Regulation B), 
Real Estate Settlement Procedures Act (Regulation X), and the Truth in 
Lending Act (Regulation Z) (September

[[Page 24520]]

2013 Mortgage Final Rule).\5\ In October 2013, the Bureau issued 
clarified compliance requirements in relation to successors in 
interest, early intervention requirements, bankruptcy law, and the Fair 
Debt Collection Practices Act (FDCPA),\6\ through an Interim Final Rule 
(IFR) \7\ and a contemporaneous compliance bulletin (October 2013 
Servicing Bulletin).\8\ Among other things, the IFR provisionally 
exempted servicers from the periodic statement requirement for a 
mortgage loan while the consumer is a debtor in bankruptcy and 
indicated that the Bureau would continue to examine the issue and might 
reinstate the requirement to provide a consumer in bankruptcy with a 
periodic statement.\9\ In October 2014, the Bureau added an alternative 
definition of small servicer in the Amendments to the 2013 Mortgage 
Rules under the Truth in Lending Act (Regulation Z).\10\ The purpose of 
each of these updates was to address important questions raised by 
industry, consumer advocacy groups, and other stakeholders. The 2013 
Mortgage Servicing Final Rules, as amended in 2013 and 2014, are 
referred to herein as the Mortgage Servicing Rules.
---------------------------------------------------------------------------

    \4\ 78 FR 44685 (July 24, 2013).
    \5\ 78 FR 60381 (Oct. 1, 2013).
    \6\ 15 U.S.C. 1692 et seq.
    \7\ 78 FR 62993 (Oct. 23, 2013).
    \8\ Consumer Fin. Prot. Bureau, CFPB Bulletin 2013-12, 
Implementation Guidance for Certain Mortgage Servicing Rules (Oct. 
15, 2013), available at https://files.consumerfinance.gov/f/201310_cfpb_mortgage-servicing_bulletin.pdf.
    \9\ 78 FR 62993, 63000-01 (Oct. 23, 2013). The Bureau received 
comments in response to the IFR that it took into account in 
developing the proposed rule and sample forms for consumers in 
bankruptcy.
    \10\ 79 FR 65300, 65304 (Nov. 3, 2014).
---------------------------------------------------------------------------

    On December 15, 2014, the Bureau published for notice and comment a 
proposed rule amending Regulation X and Regulation Z.\11\ Among other 
things, the proposed amendments to Sec.  1026.41 of Regulation Z would 
require servicers to provide modified periodic statements to consumers 
who have filed for bankruptcy, subject to certain exceptions, with 
content varying depending on whether the consumer is a debtor in a 
Chapter 7 or Chapter 11 bankruptcy case, or in a Chapter 12 or Chapter 
13 bankruptcy case, respectively.\12\ The Bureau also proposed related 
sample periodic statement forms,\13\ and indicated that it would 
conduct consumer testing of the proposed sample forms. As the Bureau 
explained in the proposed rule, ``[p]rior to finalizing any such sample 
forms, the Bureau will publish and seek comment on a report summarizing 
the methods and results of the consumer testing.'' \14\
    The comment period for the proposed rule closed on March 16, 2015. 
In response to the proposed rule, the Bureau received over 100 comment 
letters during the comment period from numerous commenters, including 
servicers, consumer groups, trade associations, other government 
entities, and individual consumers. In particular, the Bureau received 
a number of comments addressing the merits of the proposed provisions 
on the bankruptcy period statements. After the close of the comment 
period, interested parties submitted to the Bureau additional oral ex 
parte presentations and written ex parte comments on the proposed 
rule.\15\ In addition, the Bureau has conducted ex parte outreach to 
servicers to gain insight into their mortgage processing systems and 
capabilities to implement proposed changes to the servicing of loans in 
bankruptcy.\16\ After the close of the comment period, as discussed in 
more detail below, the Bureau conducted consumer testing of sample 
periodic statement forms that servicers could use for consumers in 
bankruptcy to comply with the related proposed amendments to Sec.  
1026.41.
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    \11\ 79 FR 74176 (Dec. 15, 2014).
    \12\ The discussion of the relevant portions of the proposed 
rule pertaining to the bankruptcy periodic statements are available 
at 79 FR 74176, 74256-66 (Dec. 15, 2014).
    \13\ 79 FR 74176, 74267 and 74300-02 (Dec. 15, 2014).
    \14\ 79 FR 74175, 74266 (Dec. 15, 2014).
    \15\ See Consumer Fin. Prot. Bureau, CFPB Bulletin 11-3, CFPB 
Policy on Ex Parte Presentations in Rulemaking Proceedings (Aug. 16, 
2011), available at https://files.consumerfinance.gov/f/2011/08/Bulletin_20110819_ExPartePresentationsRulemakingProceedings.pdf. 
Materials pertaining to these presentations are filed in the record 
and are publicly available at https://www.regulations.gov.
    \16\ Summaries of the Bureau's outreach are filed in the record 
and are publicly available at https://www.regulations.gov.
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II. Discussion and Request for Comment

    Following publication of the proposed rule, the Bureau engaged Fors 
Marsh Group (FMG), a research and consulting firm that specializes in 
designing disclosures and consumer testing, to conduct one-on-one 
cognitive interviews of consumers to test the Bureau's proposed sample 
periodic statement forms for consumers who have filed for bankruptcy, 
with content varying depending on whether the consumer is a debtor in a 
Chapter 7 or Chapter 11 bankruptcy case, or in a Chapter 12 or Chapter 
13 bankruptcy case, respectively. As described in detail in the report 
summarizing the testing,\17\ the Bureau and FMG worked closely to 
develop and test the Bureau's proposed sample modified periodic 
statement forms and various revisions thereto. Between May 2015 and 
August 2015, FMG conducted three rounds of one-on-one cognitive 
interviews regarding the forms with a total of 51 participants in 
Arlington, Virginia, Fort Lauderdale, Florida, and Chicago, Illinois. 
Efforts were made to recruit a significant number of participants who 
had filed for bankruptcy, who had a mortgage (preferably when they 
filed for bankruptcy), and who had trouble making mortgage payments in 
the last two years.
---------------------------------------------------------------------------

    \17\ Fors Marsh Group, Testing of Bankruptcy Periodic Statement 
Forms for Mortgage Servicing (Feb. 2016), available at https://www.consumerfinance.gov/reports (report on consumer testing 
submitted to the CFPB).
---------------------------------------------------------------------------

    During the interviews, participants were shown sample modified 
periodic statements. In general, participants who had filed for Chapter 
7 bankruptcy reviewed the statements tailored to borrowers who are 
debtors in a Chapter 7 or Chapter 11 bankruptcy case, while 
participants who had filed for Chapter 13 bankruptcy reviewed the 
statements tailored to borrowers who are debtors in a Chapter 12 or 
Chapter 13 bankruptcy case. Participants were asked specific questions 
to test their understanding of the information presented in the sample 
statements, how easily they could find various pieces of information 
presented in the sample statements, as well as to learn about how they 
would use the information presented in the sample statements. The 
Bureau and FMG worked closely to develop revisions to all of the forms 
between rounds to address any usability or comprehension issues that 
became apparent, as well as to respond further to public comments the 
Bureau received on the proposed rule.
    As noted above, the Bureau indicated in its proposed rule that it 
would conduct consumer testing of sample periodic statement forms for 
consumers in bankruptcy and publish a report prior to finalizing any 
such sample forms. The Bureau conducted the consumer testing after the 
close of the original comment period and is now issuing this notice to 
reopen the comment period in order to publish and seek public comment 
specifically on the report summarizing the methods and results of the 
testing. The Bureau is not soliciting comment on other aspects of the 
proposed rule, including the merits of the proposal to require periodic 
statements for consumers in bankruptcy under certain circumstances. As 
noted above, the Bureau has already received a number of comments on 
the merits of the proposal, and any further such comments will be 
considered outside of the scope of this request for public comment. 
Therefore, the Bureau encourages commenters to limit their

[[Page 24521]]

submissions accordingly to the report, its findings, and conclusions.

    Dated : April 21 , 2016.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2016-09695 Filed 4-25-16; 8:45 am]
 BILLING CODE 4810-AM-P
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