Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z); Correction, 30947-30949 [2017-13796]

Download as PDF 30947 Rules and Regulations Federal Register Vol. 82, No. 127 Wednesday, July 5, 2017 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. BUREAU OF CONSUMER FINANCIAL PROTECTION Pursuant to this correction, beginning April 19, 2018: proper use of the sample forms in appendices H–30(E) and H–30(F) will comply with the form and layout requirements of 12 CFR 1026.41(c) and (d); and compliance with comment 41(c)–5 of 12 CFR 1026.41(c) and commentary to 12 CFR 1026.41(e)(5) and (f) is required. FOR FURTHER INFORMATION CONTACT: Joel 12 CFR Parts 1024 and 1026 L. Singerman, Counsel; or Laura A. Johnson, Senior Counsel; Office of Regulations, at (202) 435–7700. [Docket No. CFPB–2014–0033] SUPPLEMENTARY INFORMATION: RIN 3170–AA74 I. Background Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z); Correction On August 4, 2016, the Bureau issued the 2016 Mortgage Servicing Final Rule amending certain of the Bureau’s mortgage servicing rules.1 The amendments cover nine major topics and focus primarily on clarifying, revising, or amending provisions regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under Regulation X’s servicing provisions; and prompt crediting and periodic statement requirements under Regulation Z’s servicing provisions. The amendments also address proper compliance regarding certain servicing requirements when a person is a potential or confirmed successor in interest, is a debtor in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act. The Bureau makes the following corrections to the 2016 Mortgage Servicing Final Rule. Bureau of Consumer Financial Protection. ACTION: Final rule; Official Interpretation; Correction. AGENCY: The Bureau of Consumer Financial Protection (Bureau) is making several corrections to the final rule it issued in August 2016 (2016 Mortgage Servicing Final Rule) amending certain of the Bureau’s mortgage servicing rules. First, the Bureau is correcting two typographical errors relating to the early intervention requirements. Second, the Bureau is making corrections relating to the effective date of official commentary relating to servicers’ ability to remove certain language in periodic statement sample forms as an option when, for example, communicating with confirmed successors in interest; sample periodic statement forms that servicers may use for certain consumers in bankruptcy; and official commentary relating to the bankruptcy periodic statement exemptions and modified statements. The corrected effective date for the sample periodic statement forms and commentary will be April 19, 2018. Third, the Bureau is amending the Bureau’s authority citation for Regulation Z. DATES: This correction is effective October 19, 2017. The effective date of amendatory instructions 24.d at 81 FR 72390 and 25.d.ii, vii through xvi, xix, xx, and xxi through xxiv at 81 FR 72396 is being corrected from October 19, 2017, to April 19, 2018. sradovich on DSK3GMQ082PROD with RULES SUMMARY: VerDate Sep<11>2014 16:11 Jul 03, 2017 Jkt 241001 A. Regulation X Model Clause MS–4(D)—Typographical Error Model clause MS–4(D) in the 2016 Mortgage Servicing Final Rule contains a typographical error. It provides, in part, ‘‘We have a right to invoke foreclosure based on the terms of your mortgage contact.’’ The Bureau intended the sentence to read, ‘‘We have a right to invoke foreclosure based on the terms of your mortgage contract.’’ The Bureau is correcting this typographical error. 1 See 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). PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 Comment 39(d)(2)–1—Typographical Error Regulation X comment 39(d)(2)–1 in the 2016 Mortgage Servicing Final Rule discuses a servicer’s obligations relating to the written early intervention notice, generally required under § 1024.39(b), when the borrower has provided a notice under section 805(c) of the Fair Debt Collection Practices Act and while any borrower on the mortgage loan is a debtor in bankruptcy under title 11 of the U.S. Bankruptcy Code. The comment refers to an example in comment 39(c)(1)(ii)–1.ii but should have referenced comment 39(c)(1)(ii)– 2.ii. The relevant example is set forth in comment 39(c)(1)(ii)–2.ii. The Bureau is correcting this typographical error. B. Regulation Z Effective Date Stated in the Amendatory Instruction Relating to Comment 41(c)–5 in Regulation Z The Bureau is correcting the amendatory instruction for comment 41(c)–5 in Regulation Z. Comment 41(c)–5 relates to servicers’ ability to remove language from sample periodic statement forms that could suggest liability under the mortgage loan agreement if such language is not applicable, for example, in the case of a confirmed successor in interest who is not liable on the mortgage loan obligation.2 Although the Bureau specified an effective date for this comment of April 19, 2018, in the DATES section of the 2016 Mortgage Servicing Rule, it did not do so in the relevant amendatory instruction. The Bureau corrects this error and applies an effective date of April 19, 2018, to comment 41(c)–5. Effective Date for Sample Periodic Statement Forms and Commentary Relating to Bankruptcy Periodic Statements The Bureau is correcting the effective date of the (1) sample periodic statement forms that servicers may use for consumers in bankruptcy to ensure compliance with Regulation Z § 1026.41, and (2) commentary to Regulation Z § 1026.41(e) and (f) relating to the bankruptcy periodic statement exemption and modified statements. In the 2016 Mortgage Servicing Final Rule, the Bureau 2 81 E:\FR\FM\05JYR1.SGM FR 72300. 05JYR1 30948 Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Rules and Regulations finalized rules relating to a servicer’s obligation to provide a periodic statement to certain consumers in bankruptcy. First, it amended § 1026.41(e)(5) and associated commentary generally to limit the circumstances in which a servicer is exempt from periodic statement requirements with respect to a consumer who is a debtor in bankruptcy or has discharged personal liability for a mortgage loan through bankruptcy.3 Second, it amended § 1026.41(f) and associated commentary generally to allow servicers to make various clarifications and modifications to the periodic statement requirements with respect to consumers in bankruptcy or who have discharged personal liability for a mortgage through bankruptcy.4 Third, it issued sample forms for periodic statements for certain consumers in bankruptcy.5 The Bureau intended all of these amendments relating to the bankruptcy periodic statement exemptions and modified statements to take effect on April 19, 2018, 18 months after publication in the Federal Register.6 Although the Bureau specified an 18month implementation period for the regulatory text of § 1026.41(e)(5) and (f), it specified only a 12-month implementation period for the commentary to those provisions and the bankruptcy periodic statement sample forms in appendices H–30(E) and H–30(F). The Bureau corrects this error and applies an effective date of April 19, 2018, to the commentary to § 1026.41(e)(5) and (f) and the sample forms in appendices H–30(E) and H–30(F). sradovich on DSK3GMQ082PROD with RULES Authority Citation for Regulation Z To Include 12 U.S.C. 3353 The Bureau is correcting an omission in the authority citation in the 2016 Mortgage Servicing Final Rule. The Bureau did not include 12 U.S.C. 3353 in the authority citation for amendments to Regulation Z. The Bureau is correcting the authority citation to part 1026 to include the citation to 12 U.S.C. 3353. II. Regulatory Requirements The Bureau finds that there is good cause to publish these corrections without seeking public comment.7 Public comment is unnecessary because the Bureau is correcting inadvertent, technical errors about which there is 3 81 FR 72310–11. FR 72330. 5 81 FR 72348. 6 81 FR 72349. 7 See 5 U.S.C. 553(b)(B). 4 81 VerDate Sep<11>2014 16:11 Jul 03, 2017 minimal, if any, basis for substantive disagreement. Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis.8 The Bureau has determined that these corrections do 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. List of Subjects 12 CFR Part 1024 Condominiums, Consumer protection, Housing, Insurance, Mortgages, Mortgagees, Mortgage servicing, Reporting and recordkeeping requirements. Advertising, Appraisal, Appraiser, Banking, Banks, Consumer protection, Credit, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending. Correction For the reasons set forth above, the Bureau makes the following corrections to the final rule FR Doc. No. 2016– 18901, published on October 19, 2016, at 81 FR 72160: ■ 1. On page 72376, in the third column, under amendatory instruction 16, revise added MS–4(D) to read as follows: Appendix MS–4 to Part 1024—Model Clauses for the Written Early Intervention Notice * * * MS–4(D)—Written Early Intervention Notice for Servicers Subject to FDCPA (§ 1024.39(d)(2)(iii)) This is a legally required notice. We are sending this notice to you because you are behind on your mortgage payment. We want to notify you of possible ways to avoid losing your home. We have a right to invoke foreclosure based on the terms of your mortgage contract. Please read this letter carefully. 2. On page 72382, in the third column, under amendatory instruction 17.g.vii, revise added paragraph 1 under added heading Paragraph 39(d)(2) to read as follows: 1. Borrowers in bankruptcy. To the extent the Fair Debt Collection Practices Act (FDCPA) (15 U.S.C. 1692 et seq.) applies to a servicer’s communications with a borrower and the borrower has ■ 85 Jkt 241001 * PO 00000 U.S.C. 603(a) and 604(a). Frm 00002 Fmt 4700 Authority: 12 U.S.C. 2601, 2603–2605, 2607, 2609, 2617, 3353, 5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq.’’ 4. Revise amendatory instruction 24.d appearing on page 72390, third column, to read as follows: ‘‘d. Effective April 19, 2018, adding H–30(E) and H–30(F).’’ ■ 5. Revise amendatory instruction 25.d.ii appearing on page 72396, first column, to read as follows: ‘‘ii. Effective April 19, 2018, under 41(c) Form of the periodic statement, paragraph 5 is added.’’ ■ 6. Revise amendatory instructions 25.d.vii through xvi and 25.d.xix and xx, appearing on page 72396, first column, to read as follows: ‘‘vii. Effective April 19, 2018, after the entry for 41(d)(8), the heading 41(e) Exemptions is added.’’ ‘‘viii. Effective April 19, 2018, the heading for 41(e)(5) is revised, and under that heading paragraphs 1 through 3 are revised, and paragraph 4 is added.’’ ‘‘ix. Effective April 19, 2018, the heading 41(e)(5)(i) Exemption is added, and paragraph 1 under that heading is added.’’ ‘‘x. Effective April 19, 2018, the heading Paragraph 41(e)(5)(i)(B)(2) is added, and paragraph 1 under that heading is added.’’ ‘‘xi. Effective April 19, 2018, the heading Paragraph 41(e)(5)(i)(B)(4) is added, and paragraph 1 under that heading is added.’’ ‘‘xii. Effective April 19, 2018, the heading 41(e)(5)(ii) Reaffirmation or consumer request to receive statement or coupon book is added, and paragraph 1 under that heading is added.’’ ‘‘xiii. Effective April 19, 2018, the heading 41(e)(5)(iv) Timing of compliance following transition is added.’’ ‘‘xiv. Effective April 19, 2018, the heading 41(e)(5)(iv)(A) Triggering events ■ 12 CFR Part 1026 * provided a notification pursuant to FDCPA section 805(c) notifying the servicer that the borrower refuses to pay a debt or that the borrower wishes the servicer to cease communications, with regard to that mortgage loan, § 1024.39(d)(2) exempts a servicer from providing the written notice required by § 1024.39(d) while any borrower on the mortgage loan is also a debtor in bankruptcy under title 11 of the United States Code. For an example, see comment 39(c)(1)(ii)–2.ii. ■ 3. Revise amendatory instruction 18 and its regulatory text appearing on page 72388, first column, to read as follows: ‘‘18. The authority citation for part 1026 is revised to read as follows: Sfmt 4700 E:\FR\FM\05JYR1.SGM 05JYR1 Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Rules and Regulations for transitioning to modified or unmodified statement or coupon book is added, and paragraphs 1 and 2 under that heading are added.’’ ‘‘xv. Effective April 19, 2018, the heading 41(e)(5)(iv)(B) Transitional single-billing-cycle exemption is added, and paragraph 1 under that heading is added.’’ ‘‘xvi. Effective April 19, 2018, the heading 41(e)(5)(iv)(C) Timing of first modified or unmodified statement or coupon book after transition is added, and paragraphs 1 through 3 under that heading are added.’’ * * * * * ‘‘xix. Effective April 19, 2018, the heading 41(f) Modified periodic statements and coupon books for certain consumers in bankruptcy is added, and paragraphs 1 through 6 under that heading are added.’’ ‘‘xx. Effective April 19, 2018, the heading 41(f)(3) Chapter 12 and chapter 13 consumers is added, and paragraphs 1 through 3 under that heading are added.’’ ■ 7. Revise amendatory instructions 25.d.xxi through xxiv, appearing on page 72396, second column, to read as follows: ‘‘xxi. Effective April 19, 2018, the heading 41(f)(3)(ii) Amount due is added, and paragraph 1 under that heading is added.’’ ‘‘xxii. Effective April 19, 2018, the heading 41(f)(3)(iii) Explanation of amount due is added, and paragraph 1 under that heading is added.’’ ‘‘xxiii. Effective April 19, 2018, the heading 41(f)(3)(v) Pre-petition arrearage is added, and paragraph 1 under that heading is added.’’ ‘‘xxiv. Effective April 19, 2018, the heading 41(f)(4) Multiple obligors is added, and paragraphs 1 and 2 under that heading are added.’’ Dated: June 26, 2017. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2017–13796 Filed 7–3–17; 8:45 am] sradovich on DSK3GMQ082PROD with RULES BILLING CODE 4810–AM–P VerDate Sep<11>2014 16:11 Jul 03, 2017 Jkt 241001 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2016–9071; Directorate Identifier 2016–NM–019–AD; Amendment 39–18942; AD 2017–13–12] RIN 2120–AA64 Airworthiness Directives; Airbus Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: We are adopting a new airworthiness directive (AD) for all Airbus Model A318 and A319 series airplanes; Model A320–211, –212, –214, –231, –232, and –233 airplanes; and Model A321–111, –112, –131, –211, –212, –213, –231, and –232 airplanes. This AD was prompted by an evaluation by the design approval holder (DAH), which indicates that the main landing gear (MLG) does not comply with certification specifications, which could result in a locking failure of the MLG side stay. This AD requires modification or replacement of certain MLG side stay assemblies. We are issuing this AD to address the unsafe condition on these products. SUMMARY: This AD is effective August 9, 2017. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of August 9, 2017. ADDRESSES: For Airbus service information identified in this final rule, contact Airbus, Airworthiness Office— EIAS, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone: +33 5 61 93 36 96; fax: +33 5 61 93 44 51; email: account.airwortheas@airbus.com; Internet: https:// www.airbus.com. For Messier-Dowty service information identified in this final rule, contact Messier-Dowty: Messier Services Americas, Customer Support Center, 45360 Severn Way, Sterling, VA 20166–8910; telephone: 703–450–8233; fax: 703–404–1621; Internet: https:// techpubs.services/messier-dowty.com. You may view this referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425–227–1221. It is also available on the Internet at https:// www.regulations.gov by searching for DATES: PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 30949 and locating Docket No. FAA–2016– 9071. Examining the AD Docket You may examine the AD docket on the Internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2016– 9071; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone 800–647– 5527) is Docket Management Facility, U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: Sanjay Ralhan, Aerospace Engineer, International Branch, ANM–116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057–3356; telephone 425–227–1405; fax 425–227–1149. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to all Airbus Model A318 and A319 series airplanes; Model A320–211, –212, –214, –231, –232, and –233 airplanes; and Model A321–111, –112, –131, –211, –212, –213, –231, and –232 airplanes. The NPRM published in the Federal Register on September 8, 2016 (81 FR 62035). The NPRM was prompted by an evaluation by the DAH which indicates that the MLG does not comply with certification specifications, which could result in a locking failure of the MLG side stay. The NPRM proposed to require modification or replacement of certain MLG side stay assemblies. We are issuing this AD to prevent possible collapse of the MLG during takeoff and landing. The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2016– 0018R1, dated September 14, 2016 (referred to after this as the Mandatory Continuing Airworthiness Information, or ‘‘the MCAI’’), to correct an unsafe condition for all Airbus Model A318 and A319 series airplanes; Model A320– 211, –212, –214, –231, –232, and –233 airplanes; and Model A321–111, –112, –131, –211, –212, –213, –231, and –232 airplanes. The MCAI states: E:\FR\FM\05JYR1.SGM 05JYR1

Agencies

[Federal Register Volume 82, Number 127 (Wednesday, July 5, 2017)]
[Rules and Regulations]
[Pages 30947-30949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13796]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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


Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Rules 
and Regulations

[[Page 30947]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Parts 1024 and 1026

[Docket No. CFPB-2014-0033]
RIN 3170-AA74


Amendments to the 2013 Mortgage Rules Under the Real Estate 
Settlement Procedures Act (Regulation X) and the Truth in Lending Act 
(Regulation Z); Correction

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; Official Interpretation; Correction.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is making 
several corrections to the final rule it issued in August 2016 (2016 
Mortgage Servicing Final Rule) amending certain of the Bureau's 
mortgage servicing rules. First, the Bureau is correcting two 
typographical errors relating to the early intervention requirements. 
Second, the Bureau is making corrections relating to the effective date 
of official commentary relating to servicers' ability to remove certain 
language in periodic statement sample forms as an option when, for 
example, communicating with confirmed successors in interest; sample 
periodic statement forms that servicers may use for certain consumers 
in bankruptcy; and official commentary relating to the bankruptcy 
periodic statement exemptions and modified statements. The corrected 
effective date for the sample periodic statement forms and commentary 
will be April 19, 2018. Third, the Bureau is amending the Bureau's 
authority citation for Regulation Z.

DATES: This correction is effective October 19, 2017. The effective 
date of amendatory instructions 24.d at 81 FR 72390 and 25.d.ii, vii 
through xvi, xix, xx, and xxi through xxiv at 81 FR 72396 is being 
corrected from October 19, 2017, to April 19, 2018.
    Pursuant to this correction, beginning April 19, 2018: proper use 
of the sample forms in appendices H-30(E) and H-30(F) will comply with 
the form and layout requirements of 12 CFR 1026.41(c) and (d); and 
compliance with comment 41(c)-5 of 12 CFR 1026.41(c) and commentary to 
12 CFR 1026.41(e)(5) and (f) is required.

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

SUPPLEMENTARY INFORMATION:

I. Background

    On August 4, 2016, the Bureau issued the 2016 Mortgage Servicing 
Final Rule amending certain of the Bureau's mortgage servicing 
rules.\1\ The amendments cover nine major topics and focus primarily on 
clarifying, revising, or amending provisions regarding force-placed 
insurance notices, policies and procedures, early intervention, and 
loss mitigation requirements under Regulation X's servicing provisions; 
and prompt crediting and periodic statement requirements under 
Regulation Z's servicing provisions. The amendments also address proper 
compliance regarding certain servicing requirements when a person is a 
potential or confirmed successor in interest, is a debtor in 
bankruptcy, or sends a cease communication request under the Fair Debt 
Collection Practices Act. The Bureau makes the following corrections to 
the 2016 Mortgage Servicing Final Rule.
---------------------------------------------------------------------------

    \1\ See 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).
---------------------------------------------------------------------------

A. Regulation X

Model Clause MS-4(D)--Typographical Error
    Model clause MS-4(D) in the 2016 Mortgage Servicing Final Rule 
contains a typographical error. It provides, in part, ``We have a right 
to invoke foreclosure based on the terms of your mortgage contact.'' 
The Bureau intended the sentence to read, ``We have a right to invoke 
foreclosure based on the terms of your mortgage contract.'' The Bureau 
is correcting this typographical error.
Comment 39(d)(2)-1--Typographical Error
    Regulation X comment 39(d)(2)-1 in the 2016 Mortgage Servicing 
Final Rule discuses a servicer's obligations relating to the written 
early intervention notice, generally required under Sec.  1024.39(b), 
when the borrower has provided a notice under section 805(c) of the 
Fair Debt Collection Practices Act and while any borrower on the 
mortgage loan is a debtor in bankruptcy under title 11 of the U.S. 
Bankruptcy Code. The comment refers to an example in comment 
39(c)(1)(ii)-1.ii but should have referenced comment 39(c)(1)(ii)-2.ii. 
The relevant example is set forth in comment 39(c)(1)(ii)-2.ii. The 
Bureau is correcting this typographical error.

B. Regulation Z

Effective Date Stated in the Amendatory Instruction Relating to Comment 
41(c)-5 in Regulation Z
    The Bureau is correcting the amendatory instruction for comment 
41(c)-5 in Regulation Z. Comment 41(c)-5 relates to servicers' ability 
to remove language from sample periodic statement forms that could 
suggest liability under the mortgage loan agreement if such language is 
not applicable, for example, in the case of a confirmed successor in 
interest who is not liable on the mortgage loan obligation.\2\ Although 
the Bureau specified an effective date for this comment of April 19, 
2018, in the DATES section of the 2016 Mortgage Servicing Rule, it did 
not do so in the relevant amendatory instruction. The Bureau corrects 
this error and applies an effective date of April 19, 2018, to comment 
41(c)-5.
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    \2\ 81 FR 72300.
---------------------------------------------------------------------------

Effective Date for Sample Periodic Statement Forms and Commentary 
Relating to Bankruptcy Periodic Statements
    The Bureau is correcting the effective date of the (1) sample 
periodic statement forms that servicers may use for consumers in 
bankruptcy to ensure compliance with Regulation Z Sec.  1026.41, and 
(2) commentary to Regulation Z Sec.  1026.41(e) and (f) relating to the 
bankruptcy periodic statement exemption and modified statements. In the 
2016 Mortgage Servicing Final Rule, the Bureau

[[Page 30948]]

finalized rules relating to a servicer's obligation to provide a 
periodic statement to certain consumers in bankruptcy. First, it 
amended Sec.  1026.41(e)(5) and associated commentary generally to 
limit the circumstances in which a servicer is exempt from periodic 
statement requirements with respect to a consumer who is a debtor in 
bankruptcy or has discharged personal liability for a mortgage loan 
through bankruptcy.\3\ Second, it amended Sec.  1026.41(f) and 
associated commentary generally to allow servicers to make various 
clarifications and modifications to the periodic statement requirements 
with respect to consumers in bankruptcy or who have discharged personal 
liability for a mortgage through bankruptcy.\4\ Third, it issued sample 
forms for periodic statements for certain consumers in bankruptcy.\5\
---------------------------------------------------------------------------

    \3\ 81 FR 72310-11.
    \4\ 81 FR 72330.
    \5\ 81 FR 72348.
---------------------------------------------------------------------------

    The Bureau intended all of these amendments relating to the 
bankruptcy periodic statement exemptions and modified statements to 
take effect on April 19, 2018, 18 months after publication in the 
Federal Register.\6\ Although the Bureau specified an 18-month 
implementation period for the regulatory text of Sec.  1026.41(e)(5) 
and (f), it specified only a 12-month implementation period for the 
commentary to those provisions and the bankruptcy periodic statement 
sample forms in appendices H-30(E) and H-30(F). The Bureau corrects 
this error and applies an effective date of April 19, 2018, to the 
commentary to Sec.  1026.41(e)(5) and (f) and the sample forms in 
appendices H-30(E) and H-30(F).
---------------------------------------------------------------------------

    \6\ 81 FR 72349.
---------------------------------------------------------------------------

Authority Citation for Regulation Z To Include 12 U.S.C. 3353
    The Bureau is correcting an omission in the authority citation in 
the 2016 Mortgage Servicing Final Rule. The Bureau did not include 12 
U.S.C. 3353 in the authority citation for amendments to Regulation Z. 
The Bureau is correcting the authority citation to part 1026 to include 
the citation to 12 U.S.C. 3353.

II. Regulatory Requirements

    The Bureau finds that there is good cause to publish these 
corrections without seeking public comment.\7\ Public comment is 
unnecessary because the Bureau is correcting inadvertent, technical 
errors about which there is minimal, if any, basis for substantive 
disagreement. Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\8\ The Bureau has determined that 
these corrections do 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.
---------------------------------------------------------------------------

    \7\ See 5 U.S.C. 553(b)(B).
    \8\ 5 U.S.C. 603(a) and 604(a).
---------------------------------------------------------------------------

List of Subjects

12 CFR Part 1024

    Condominiums, Consumer protection, Housing, Insurance, Mortgages, 
Mortgagees, Mortgage servicing, Reporting and recordkeeping 
requirements.

12 CFR Part 1026

    Advertising, Appraisal, Appraiser, Banking, Banks, Consumer 
protection, Credit, Credit unions, Mortgages, National banks, Reporting 
and recordkeeping requirements, Savings associations, Truth in lending.

Correction

    For the reasons set forth above, the Bureau makes the following 
corrections to the final rule FR Doc. No. 2016-18901, published on 
October 19, 2016, at 81 FR 72160:

0
1. On page 72376, in the third column, under amendatory instruction 16, 
revise added MS-4(D) to read as follows:

Appendix MS-4 to Part 1024--Model Clauses for the Written Early 
Intervention Notice

* * * * *

MS-4(D)--Written Early Intervention Notice for Servicers Subject to 
FDCPA (Sec.  1024.39(d)(2)(iii))

    This is a legally required notice. We are sending this notice to 
you because you are behind on your mortgage payment. We want to 
notify you of possible ways to avoid losing your home. We have a 
right to invoke foreclosure based on the terms of your mortgage 
contract. Please read this letter carefully.


0
2. On page 72382, in the third column, under amendatory instruction 
17.g.vii, revise added paragraph 1 under added heading Paragraph 
39(d)(2) to read as follows:
    1. Borrowers in bankruptcy. To the extent the Fair Debt Collection 
Practices Act (FDCPA) (15 U.S.C. 1692 et seq.) applies to a servicer's 
communications with a borrower and the borrower has provided a 
notification pursuant to FDCPA section 805(c) notifying the servicer 
that the borrower refuses to pay a debt or that the borrower wishes the 
servicer to cease communications, with regard to that mortgage loan, 
Sec.  1024.39(d)(2) exempts a servicer from providing the written 
notice required by Sec.  1024.39(d) while any borrower on the mortgage 
loan is also a debtor in bankruptcy under title 11 of the United States 
Code. For an example, see comment 39(c)(1)(ii)-2.ii.
0
3. Revise amendatory instruction 18 and its regulatory text appearing 
on page 72388, first column, to read as follows:
    ``18. The authority citation for part 1026 is revised to read as 
follows:

    Authority:  12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353, 
5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq.''

0
4. Revise amendatory instruction 24.d appearing on page 72390, third 
column, to read as follows:
    ``d. Effective April 19, 2018, adding H-30(E) and H-30(F).''
0
5. Revise amendatory instruction 25.d.ii appearing on page 72396, first 
column, to read as follows:
    ``ii. Effective April 19, 2018, under 41(c) Form of the periodic 
statement, paragraph 5 is added.''
0
6. Revise amendatory instructions 25.d.vii through xvi and 25.d.xix and 
xx, appearing on page 72396, first column, to read as follows:
    ``vii. Effective April 19, 2018, after the entry for 41(d)(8), the 
heading 41(e) Exemptions is added.''
    ``viii. Effective April 19, 2018, the heading for 41(e)(5) is 
revised, and under that heading paragraphs 1 through 3 are revised, and 
paragraph 4 is added.''
    ``ix. Effective April 19, 2018, the heading 41(e)(5)(i) Exemption 
is added, and paragraph 1 under that heading is added.''
    ``x. Effective April 19, 2018, the heading Paragraph 
41(e)(5)(i)(B)(2) is added, and paragraph 1 under that heading is 
added.''
    ``xi. Effective April 19, 2018, the heading Paragraph 
41(e)(5)(i)(B)(4) is added, and paragraph 1 under that heading is 
added.''
    ``xii. Effective April 19, 2018, the heading 41(e)(5)(ii) 
Reaffirmation or consumer request to receive statement or coupon book 
is added, and paragraph 1 under that heading is added.''
    ``xiii. Effective April 19, 2018, the heading 41(e)(5)(iv) Timing 
of compliance following transition is added.''
    ``xiv. Effective April 19, 2018, the heading 41(e)(5)(iv)(A) 
Triggering events

[[Page 30949]]

for transitioning to modified or unmodified statement or coupon book is 
added, and paragraphs 1 and 2 under that heading are added.''
    ``xv. Effective April 19, 2018, the heading 41(e)(5)(iv)(B) 
Transitional single-billing-cycle exemption is added, and paragraph 1 
under that heading is added.''
    ``xvi. Effective April 19, 2018, the heading 41(e)(5)(iv)(C) Timing 
of first modified or unmodified statement or coupon book after 
transition is added, and paragraphs 1 through 3 under that heading are 
added.''
* * * * *
    ``xix. Effective April 19, 2018, the heading 41(f) Modified 
periodic statements and coupon books for certain consumers in 
bankruptcy is added, and paragraphs 1 through 6 under that heading are 
added.''
    ``xx. Effective April 19, 2018, the heading 41(f)(3) Chapter 12 and 
chapter 13 consumers is added, and paragraphs 1 through 3 under that 
heading are added.''
0
7. Revise amendatory instructions 25.d.xxi through xxiv, appearing on 
page 72396, second column, to read as follows:
    ``xxi. Effective April 19, 2018, the heading 41(f)(3)(ii) Amount 
due is added, and paragraph 1 under that heading is added.''
    ``xxii. Effective April 19, 2018, the heading 41(f)(3)(iii) 
Explanation of amount due is added, and paragraph 1 under that heading 
is added.''
    ``xxiii. Effective April 19, 2018, the heading 41(f)(3)(v) Pre-
petition arrearage is added, and paragraph 1 under that heading is 
added.''
    ``xxiv. Effective April 19, 2018, the heading 41(f)(4) Multiple 
obligors is added, and paragraphs 1 and 2 under that heading are 
added.''

    Dated: June 26, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-13796 Filed 7-3-17; 8:45 am]
 BILLING CODE 4810-AM-P
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