Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X; Rescission, 20791-20795 [2025-08643]
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Federal Register / Vol. 90, No. 94 / Friday, May 16, 2025 / Rules and Regulations
I. Review Under Executive Order 12630
Pursuant to E.O. 12630,
‘‘Governmental Actions and Interference
with Constitutionally Protected Property
Rights,’’ 53 FR 8859 (March 18, 1988),
DOE has determined that this rescission
would not result in any takings that
might require compensation under the
Fifth Amendment to the U.S.
Constitution.
J. Review Under the Treasury and
General Government Appropriations
Act, 2001
Section 515 of the Treasury and
General Government Appropriations
Act, 2001 (44 U.S.C. 3516, note)
provides for Federal agencies to review
most disseminations of information to
the public under information quality
guidelines established by each agency
pursuant to general guidelines issued by
OMB. OMB’s guidelines were published
at 67 FR 8452 (Feb. 22, 2002), and
DOE’s guidelines were published at 67
FR 62446 (Oct. 7, 2002). Pursuant to
OMB Memorandum M–19–15,
Improving Implementation of the
Information Quality Act (April 24,
2019), DOE published updated
guidelines which are available at:
https://www.energy.gov/cio/departmentenergy-information-quality-guidelines.
DOE has reviewed this rescission under
the OMB and DOE guidelines and has
concluded that it is consistent with
applicable policies in those guidelines.
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K. Review Under Executive Order 13211
E.O. 13211, ‘‘Actions Concerning
Regulations That Significantly Affect
Energy Supply, Distribution, or Use,’’ 66
FR 28355 (May 22, 2001), requires
Federal agencies to prepare and submit
to OIRA at OMB, a Statement of Energy
Effects for any significant energy action.
A ‘‘significant energy action’’ is defined
as any action by an agency that
promulgates or is expected to lead to
promulgation of a final rule, and that:
(1) is a significant regulatory action
under Executive Order 12866, or any
successor order and is likely to have a
significant adverse effect on the supply,
distribution, or use of energy; or (2) is
designated by the Administrator of
OIRA as a significant energy action. For
any significant energy action, the agency
must give a detailed statement of any
adverse effects on energy supply,
distribution, or use should the proposal
be implemented, and of reasonable
alternatives to the action and their
expected benefits on energy supply,
distribution, and use.
This rescission is not a significant
regulatory action under E.O. 12866.
Moreover, it would not have a
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significant adverse effect on the supply,
distribution, or use of energy, nor has it
been designated as such by the
Administrator at OIRA. Accordingly,
DOE has not prepared a Statement of
Energy Effects.
L. Review Under Additional Executive
Orders and Presidential Memoranda
DOE has examined this rescission and
has tentatively determined that it is
consistent with the policies and
directives outlined in Executive Order
14192, ‘‘Unleashing Prosperity Through
Deregulation.’’ This rescission is
expected to be an Executive Order
14192 deregulatory action.
III. Approval of the Secretary
The Secretary of Energy has approved
publication of this direct final rule;
request for comment.
List of Subjects in 10 CFR Part 1042
Education, Sex discrimination.
Signing Authority
This document of the Department of
Energy was signed on May 9, 2025, by
Chris Wright, Secretary, Department of
Energy. That document with the original
signature and date is maintained by
DOE. For administrative purposes only,
and in compliance with requirements of
the Office of the Federal Register, the
undersigned DOE Federal Register
Liaison Officer has been authorized to
sign and submit the document in
electronic format for publication, as an
official document of the Department of
Energy. This administrative process in
no way alters the legal effect of this
document upon publication in the
Federal Register.
Signed in Washington, DC, on May 9, 2025.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer,
U.S. Department of Energy.
For the reasons set forth in the
preamble, DOE amends part 1042 of
chapter X of title 10 of the Code of
Federal Regulations, as set forth below:
PART 1042—NONDISCRIMINATION ON
THE BASIS OF SEX IN EDUCATION
PROGRAMS OR ACTIVITIES
RECEIVING FEDERAL FINANCIAL
ASSISTANCE
1. The authority citation for part 1042
continues to read as follows:
■
Authority: 20 U.S.C. 1681, 1682, 1683,
1685, 1686, 1687, 1688; 42 U.S.C. 7101 et
seq.; and 50 U.S.C. 2401 et seq.
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§ 1042.110
20791
[Amended]
2. Amend § 1042.110 by removing and
reserving paragraphs (b) through (d).
■
[FR Doc. 2025–08594 Filed 5–12–25; 9:30 am]
BILLING CODE 6450–01–P
CONSUMER FINANCIAL PROTECTION
BUREAU
12 CFR Part 1024
[Docket No. CFPB–2025–0014]
RIN 3170–AB42
Protections for Borrowers Affected by
the COVID–19 Emergency Under the
Real Estate Settlement Procedures Act
(RESPA), Regulation X; Rescission
Consumer Financial Protection
Bureau.
ACTION: Interim final rule; request for
public comment.
AGENCY:
This interim final rule (IFR)
rescinds the final rule ‘‘Protections for
Borrowers Affected by the COVID–19
Emergency Under the Real Estate
Settlement Procedures Act (RESPA),
Regulation X.’’
DATES: This IFR is effective on July 15,
2025. Comments must be received on or
before June 16, 2025.
ADDRESSES: You may submit responsive
information and other comments,
identified by Docket No. CFPB–2025–
0014, by any of the following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments. A
brief summary of this document will be
available at https://
www.regulations.gov/docket/CFPB2025-0014.
• Email: 2025-COVID-MortgageServicing-Rescission@cfpb.gov. Include
Docket No. CFPB–2025–0014 in the
subject line of the message.
• Mail/Hand Delivery/Courier:
Comment Intake—Protections for
Borrowers Affected by the COVID–19
Emergency Under the Real Estate
Settlement Procedures Act (RESPA),
Regulation X, Rescission, c/o Legal
Division Docket Manager, Consumer
Financial Protection Bureau, 1700 G
Street NW, Washington, DC 20552.
Instructions: The CFPB encourages
the early submission of comments. All
submissions should include the agency
name and docket number. Additionally,
where the Bureau has asked for specific
comment on a topic, commentors
should seek to highlight the topic to
which its comment is applicable.
Because paper mail is subject to delay,
commenters are encouraged to submit
SUMMARY:
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comments electronically. In general, all
comments received will be posted
without change to https://
www.regulations.gov. All submissions,
including attachments and other
supporting materials, will become part
of the public record and subject to
public disclosure. Proprietary
information or sensitive personal
information, such as account numbers
or Social Security numbers, or names of
other individuals, should not be
included. Submissions will not be
edited to remove any identifying or
contact information.
FOR FURTHER INFORMATION CONTACT:
Dave Gettler, Paralegal Specialist, Office
of Regulations, at 202–435–7700. If you
require this document in an alternative
electronic format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION: This IFR
rescinds ‘‘Protections for Borrowers
Affected by the COVID–19 Emergency
Under the Real Estate Settlement
Procedures Act (RESPA), Regulation X,’’
86 FR 34848 (June 30, 2021) (2021
COVID RESPA Rule), for two reasons:
First, the 2021 COVID RESPA Rule
adopted temporary procedural
safeguards related to mortgage
foreclosure, temporarily permitted
mortgage servicers to offer certain loan
modifications made available to
borrowers experiencing a COVID–19
related hardship, and finalized certain
temporary amendments to Regulation X
related to the COVID–19 pandemic. The
rule stated that the temporary
procedural safeguards do not apply if a
servicer makes the first notice or filing
required by applicable law for any
judicial or non-judicial foreclosure
process on or after January 1, 2022. In
addition, the rule stated that the
temporary COVID–19 related live
contact requirements would only be
required until October 1, 2022. On April
10, 2023, then-President Biden signed a
joint resolution of Congress declaring
that ‘‘the national emergency declared
by the finding of the President on March
13, 2020’’ related to the COVID–19
pandemic ‘‘is hereby terminated.’’ See
Public Law 118–3 (Apr. 10, 2023). The
Bureau finds that it has good cause to
remove, without prior notice and
comment, language relating to the
COVID–19 pandemic added by the 2021
COVID RESPA Rule, as prior notice and
comment is unnecessary. Both the
temporary additional early intervention
live contact requirements and the
temporary special COVID–19 loss
mitigation procedural safeguards have
been sunset by their own terms, and the
COVID–19 Public Health Emergency
expired on May 11, 2023. Thus,
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borrowers and servicers are no longer
utilizing these safeguards. Moreover, the
Bureau proposed a rule on July 24, 2024
(89 FR 60204), that would provide
additional flexibility to servicers to offer
streamlined loss mitigation options
when borrowers seek payment
assistance. As part of the revised
framework, the proposal would have
removed the provisions implemented in
response to the COVID–19 pandemic,
and the Bureau did not receive public
comments on the proposed removal of
those provisions. As part of any future
rulemaking, the Bureau would consider
and address comments received in
response to the 2024 proposed rule,
including comments related to applying
the loss mitigation lessons learned from
the COVID–19 pandemic.
Second, it is the policy of the Bureau
to streamline regulatory requirements to
reduce burdens on the American public.
The Bureau has determined that, in light
of the end of the COVID–19 pandemic,
these regulations needlessly complicate
Regulation X without commensurate
benefits.
Section 1022 Analysis
In developing this rule, the Bureau
has considered the potential benefits,
costs, and impacts as required by
section 1022(b)(2)(A) of the Consumer
Financial Protection Act of 2010
(CFPA), 12 U.S.C. 5512(b)(2)(A). This
rule does not impose any costs to
consumers or covered persons or have
any direct impact on consumers’ access
to consumer financial products or
services. Further, it has no unique
impact on insured depository
institutions or insured credit unions
with less than $10 billion in assets, as
described in section 1026(a) of the
CFPA. Finally, it does not have any
unique impact on rural consumers.
Legal Authority
The Bureau is issuing this IFR
pursuant to its authority under 12
U.S.C. 2617(a), 2506(j)(3), and
2605(k)(1)(E); 12 U.S.C. 5512(b)(1); and
12 U.S.C. 5532.
List of Subjects in 12 CFR Part 1024
Banks, Banking, Condominiums,
Consumer protection, Credit unions,
Housing, Mortgage insurance,
Mortgages, National banks, Reporting
and recordkeeping requirements,
Savings associations.
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation X, 12 CFR part 1024, as set
forth below:
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PART 1024—REAL ESTATE
SETTLEMENT PROCEDURES ACT
(REGULATION X)
1. The authority citation for part 1024
continues to read as follows:
■
Authority: 12 U.S.C. 2603–2605, 2607,
2609, 2617, 5512, 5532, 5581.
Subpart C—Mortgage Servicing
§ 1024.31
[Amended]
2. Amend § 1024.31 by removing the
definition of ‘‘COVID–19-related
hardship.’’
■ 3. Amend § 1024.39 by:
■ a. Revising paragraph (a); and
■ b. Removing paragraph (e).
The revision reads as follows:
■
§ 1024.39 Early intervention requirements
for certain borrowers.
(a) Live contact. Except as otherwise
provided in this section, a servicer shall
establish or make good faith efforts to
establish live contact with a delinquent
borrower no later than the 36th day of
a borrower’s delinquency and again no
later than 36 days after each payment
due date so long as the borrower
remains delinquent. Promptly after
establishing live contact with a
borrower, the servicer shall inform the
borrower about the availability of loss
mitigation options, if appropriate.
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■ 4. Amend § 1024.41 by:
■ a. Revising paragraphs (c)(2)(i) and
(c)(2)(v)(A)(1); and
■ b. Removing paragraphs (c)(2)(vi) and
(f)(3).
The revisions read as follows:
§ 1024.41
Loss mitigation procedures.
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(c) * * *
(2) * * *
(i) In general. Except as set forth in
paragraphs (c)(2)(ii), (iii), and (v) of this
section, a servicer shall not evade the
requirement to evaluate a complete loss
mitigation application for all loss
mitigation options available to the
borrower by offering a loss mitigation
option based upon an evaluation of any
information provided by a borrower in
connection with an incomplete loss
mitigation application.
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(v) * * *
(A) * * *
(1) The loss mitigation option permits
the borrower to delay paying covered
amounts until the mortgage loan is
refinanced, the mortgaged property is
sold, the term of the mortgage loan ends,
or, for a mortgage loan insured by the
Federal Housing Administration, the
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mortgage insurance terminates. For
purposes of this paragraph
(c)(2)(v)(A)(1), ‘‘covered amounts’’
includes, without limitation, all
principal and interest payments
forborne under a payment forbearance
program made available to borrowers
experiencing a COVID–19-related
hardship, including a payment
forbearance program made pursuant to
the Coronavirus Economic Stabilization
Act, section 4022 (15 U.S.C. 9056); it
also includes, without limitation, all
other principal and interest payments
that are due and unpaid by a borrower
experiencing COVID–19-related
hardship. For purposes of this
paragraph (c)(2)(v)(A)(1), ‘‘the term of
the mortgage loan’’ means the term of
the mortgage loan according to the
obligation between the parties in effect
when the borrower is offered the loss
mitigation option.
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■ 5. Amend supplement I by:
■ a. Under § 1024.39—Early
Intervention Requirements for Certain
Borrowers, revising 39(a) Live Contact;
and
■ b. Under § 1024.41—Loss Mitigation
Procedures:
■ i. Revising 41(b)(1) Complete Loss
Mitigation Application; and
■ ii. Removing 41(f)(3) Temporary
Special COVID–19 Loss Mitigation
Procedural Safeguards and 41(f)(3)(ii)(C)
Unresponsive Borrower.
The revisions read as follows:
Supplement I to Part 1024—Official
Bureau Interpretations
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Subpart C—Mortgage Servicing
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§ 1024.39 Early Intervention Requirements
for Certain Borrowers
39(a) Live Contact.
1. Delinquency. Section 1024.39
requires a servicer to establish or
attempt to establish live contact no later
than the 36th day of a borrower’s
delinquency. This provision is
illustrated as follows:
i. Assume a mortgage loan obligation
with a monthly billing cycle and
monthly payments of $2,000
representing principal, interest, and
escrow due on the first of each month.
A. The borrower fails to make a
payment of $2,000 on, and makes no
payment during the 36-day period after,
January 1. The servicer must establish or
make good faith efforts to establish live
contact not later than 36 days after
January 1—i.e., on or before February 6.
B. The borrower makes no payments
during the period January 1 through
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April 1, although payments of $2,000
each on January 1, February 1, and
March 1 are due. Assuming it is not a
leap year, the borrower is 90 days
delinquent as of April 1. The servicer
may time its attempts to establish live
contact such that a single attempt will
meet the requirements of § 1024.39(a)
for two missed payments. To illustrate,
the servicer complies with § 1024.39(a)
if the servicer makes a good faith effort
to establish live contact with the
borrower, for example, on February 5
and again on March 25. The February 5
attempt meets the requirements of
§ 1024.39(a) for both the January 1 and
February 1 missed payments. The
March 25 attempt meets the
requirements of § 1024.39(a) for the
March 1 missed payment.
ii. A borrower who is performing as
agreed under a loss mitigation option
designed to bring the borrower current
on a previously missed payment is not
delinquent for purposes of § 1024.39.
iii. During the 60-day period
beginning on the effective date of
transfer of the servicing of any mortgage
loan, a borrower is not delinquent for
purposes of § 1024.39 if the transferee
servicer learns that the borrower has
made a timely payment that has been
misdirected to the transferor servicer
and the transferee servicer documents
its files accordingly. See § 1024.33(c)(1)
and comment 33(c)(1)–2.
iv. A servicer need not establish live
contact with a borrower unless the
borrower is delinquent during the 36
days after a payment due date. If the
borrower satisfies a payment in full
before the end of the 36-day period, the
servicer need not establish live contact
with the borrower. For example, if a
borrower misses a January 1 due date
but makes that payment on February 1,
a servicer need not establish or make
good faith efforts to establish live
contact by February 6.
2. Establishing live contact. Live
contact provides servicers an
opportunity to discuss the
circumstances of a borrower’s
delinquency. Live contact with a
borrower includes speaking on the
telephone or conducting an in-person
meeting with the borrower but not
leaving a recorded phone message. A
servicer may rely on live contact
established at the borrower’s initiative
to satisfy the live contact requirement in
§ 1024.39(a). Servicers may also
combine contacts made pursuant to
§ 1024.39(a) with contacts made with
borrowers for other reasons, for
instance, by telling borrowers on
collection calls that loss mitigation
options may be available.
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20793
3. Good faith efforts. Good faith
efforts to establish live contact consist of
reasonable steps, under the
circumstances, to reach a borrower and
may include telephoning the borrower
on more than one occasion or sending
written or electronic communication
encouraging the borrower to establish
live contact with the servicer. The
length of a borrower’s delinquency, as
well as a borrower’s failure to respond
to a servicer’s repeated attempts at
communication pursuant to
§ 1024.39(a), are relevant circumstances
to consider. For example, whereas
‘‘good faith efforts’’ to establish live
contact with regard to a borrower with
two consecutive missed payments might
require a telephone call, ‘‘good faith
efforts’’ to establish live contact with
regard to an unresponsive borrower
with six or more consecutive missed
payments might require no more than
including a sentence requesting that the
borrower contact the servicer with
regard to the delinquencies in the
periodic statement or in an electronic
communication. Comment 39(a)-6
discusses the relationship between live
contact and the loss mitigation
procedures set forth in § 1024.41.
4. Promptly inform if appropriate.
i. Servicer’s determination. It is
within a servicer’s reasonable discretion
to determine whether informing a
borrower about the availability of loss
mitigation options is appropriate under
the circumstances. The following
examples demonstrate when a servicer
has made a reasonable determination
regarding the appropriateness of
providing information about loss
mitigation options.
A. A servicer provides information
about the availability of loss mitigation
options to a borrower who notifies a
servicer during live contact of a material
adverse change in the borrower’s
financial circumstances that is likely to
cause the borrower to experience a longterm delinquency for which loss
mitigation options may be available.
B. A servicer does not provide
information about the availability of loss
mitigation options to a borrower who
has missed a January 1 payment and
notified the servicer that full late
payment will be transmitted to the
servicer by February 15.
ii. Promptly inform. If appropriate, a
servicer may inform borrowers about the
availability of loss mitigation options
orally, in writing, or through electronic
communication, but the servicer must
provide such information promptly after
the servicer establishes live contact. A
servicer need not notify a borrower
about any particular loss mitigation
options at this time; if appropriate, a
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servicer need only inform borrowers
generally that loss mitigation options
may be available. If appropriate, a
servicer may satisfy the requirement in
§ 1024.39(a) to inform a borrower about
loss mitigation options by providing the
written notice required by
§ 1024.39(b)(1), but the servicer must
provide such notice promptly after the
servicer establishes live contact.
5. Borrower’s representative. Section
1024.39 does not prohibit a servicer
from satisfying its requirements by
establishing live contact with and, if
applicable, providing information about
loss mitigation options to a person
authorized by the borrower to
communicate with the servicer on the
borrower’s behalf. A servicer may
undertake reasonable procedures to
determine if a person that claims to be
an agent of a borrower has authority
from the borrower to act on the
borrower’s behalf, for example, by
requiring a person that claims to be an
agent of the borrower to provide
documentation from the borrower
stating that the purported agent is acting
on the borrower’s behalf.
6. Relationship between live contact
and loss mitigation procedures. If the
servicer has established and is
maintaining ongoing contact with the
borrower under the loss mitigation
procedures under § 1024.41, including
during the borrower’s completion of a
loss mitigation application or the
servicer’s evaluation of the borrower’s
complete loss mitigation application, or
if the servicer has sent the borrower a
notice pursuant to § 1024.41(c)(1)(ii)
that the borrower is not eligible for any
loss mitigation options, the servicer
complies with § 1024.39(a) and need not
otherwise establish or make good faith
efforts to establish live contact. A
servicer must resume compliance with
the requirements of § 1024.39(a) for a
borrower who becomes delinquent again
after curing a prior delinquency.
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§ 1024.41
Loss Mitigation Procedures
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41(b)(1) Complete loss mitigation
application.
1. In general. A servicer has flexibility
to establish its own application
requirements and to decide the type and
amount of information it will require
from borrowers applying for loss
mitigation options. In the course of
gathering documents and information
from a borrower to complete a loss
mitigation application, a servicer may
stop collecting documents and
information for a particular loss
mitigation option after receiving
information confirming that, pursuant to
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any requirements established by the
owner or assignee of the borrower’s
mortgage loan, the borrower is ineligible
for that option. A servicer may not stop
collecting documents and information
for any loss mitigation option based
solely upon the borrower’s stated
preference but may stop collecting
documents and information for any loss
mitigation option based on the
borrower’s stated preference in
conjunction with other information, as
prescribed by any requirements
established by the owner or assignee. A
servicer must continue to exercise
reasonable diligence to obtain
documents and information from the
borrower that the servicer requires to
evaluate the borrower as to all other loss
mitigation options available to the
borrower. For example:
i. Assume a particular loss mitigation
option is only available for borrowers
whose mortgage loans were originated
before a specific date. Once a servicer
receives documents or information
confirming that a mortgage loan was
originated after that date, the servicer
may stop collecting documents or
information from the borrower that the
servicer would use to evaluate the
borrower for that loss mitigation option,
but the servicer must continue its efforts
to obtain documents and information
from the borrower that the servicer
requires to evaluate the borrower for all
other available loss mitigation options.
ii. Assume applicable requirements
established by the owner or assignee of
the mortgage loan provide that a
borrower is ineligible for home retention
loss mitigation options if the borrower
states a preference for a short sale and
provides evidence of another applicable
hardship, such as military Permanent
Change of Station orders or an
employment transfer more than 50 miles
away. If the borrower indicates a
preference for a short sale or, more
generally, not to retain the property, the
servicer may not stop collecting
documents and information from the
borrower pertaining to available home
retention options solely because the
borrower has indicated such a
preference, but the servicer may stop
collecting such documents and
information once the servicer receives
information confirming that the
borrower has an applicable hardship
under requirements established by the
owner or assignee, such as military
Permanent Change of Station orders or
employment transfer.
2. When an inquiry or prequalification
request becomes an application. A
servicer is encouraged to provide
borrowers with information about loss
mitigation programs. If in giving
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information to the borrower, the
borrower expresses an interest in
applying for a loss mitigation option
and provides information the servicer
would evaluate in connection with a
loss mitigation application, the
borrower’s inquiry or prequalification
request has become a loss mitigation
application. A loss mitigation
application is considered expansively
and includes any ‘‘prequalification’’ for
a loss mitigation option. For example, if
a borrower requests that a servicer
determine if the borrower is
‘‘prequalified’’ for a loss mitigation
program by evaluating the borrower
against preliminary criteria to determine
eligibility for a loss mitigation option,
the request constitutes a loss mitigation
application.
3. Examples of inquiries that are not
applications. The following examples
illustrate situations in which only an
inquiry has taken place and no loss
mitigation application has been
submitted:
i. A borrower calls to ask about loss
mitigation options and servicer
personnel explain the loss mitigation
options available to the borrower and
the criteria for determining the
borrower’s eligibility for any such loss
mitigation option. The borrower does
not, however, provide any information
that a servicer would consider for
evaluating a loss mitigation application.
ii. A borrower calls to ask about the
process for applying for a loss
mitigation option but the borrower does
not provide any information that a
servicer would consider for evaluating a
loss mitigation application.
4. Although a servicer has flexibility
to establish its own requirements
regarding the documents and
information necessary for a loss
mitigation application, the servicer must
act with reasonable diligence to collect
information needed to complete the
application. A servicer must request
information necessary to make a loss
mitigation application complete
promptly after receiving the loss
mitigation application. Reasonable
diligence for purposes of § 1024.41(b)(1)
includes, without limitation, the
following actions:
i. A servicer requires additional
information from the applicant, such as
an address or a telephone number to
verify employment; the servicer contacts
the applicant promptly to obtain such
information after receiving a loss
mitigation application;
ii. Servicing for a mortgage loan is
transferred to a servicer and the
borrower makes an incomplete loss
mitigation application to the transferee
servicer after the transfer; the transferee
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Federal Register / Vol. 90, No. 94 / Friday, May 16, 2025 / Rules and Regulations
ddrumheller on DSK120RN23PROD with RULES1
servicer reviews documents provided by
the transferor servicer to determine if
information required to make the loss
mitigation application complete is
contained within documents transferred
by the transferor servicer to the servicer;
and
iii. A servicer offers a borrower a
short-term payment forbearance
program or a short-term repayment plan
based on an evaluation of an incomplete
loss mitigation application and provides
the borrower the written notice
pursuant to § 1024.41(c)(2)(iii). If the
borrower remains in compliance with
the short-term payment forbearance
program or short-term repayment plan,
and the borrower does not request
further assistance, the servicer may
suspend reasonable diligence efforts
until near the end of the payment
forbearance program or repayment plan.
However, if the borrower fails to comply
with the program or plan or requests
further assistance, the servicer must
immediately resume reasonable
diligence efforts. Near the end of a
short-term payment forbearance
program offered based on an evaluation
of an incomplete loss mitigation
application pursuant to
§ 1024.41(c)(2)(iii), and prior to the end
of the forbearance period, if the
borrower remains delinquent, a servicer
must contact the borrower to determine
if the borrower wishes to complete the
loss mitigation application and proceed
with a full loss mitigation evaluation.
5. Information not in the borrower’s
control. A loss mitigation application is
complete when a borrower provides all
information required from the borrower
notwithstanding that additional
information may be required by a
servicer that is not in the control of a
borrower. For example, if a servicer
requires a consumer report for a loss
mitigation evaluation, a loss mitigation
application is considered complete if a
borrower has submitted all information
required from the borrower without
regard to whether a servicer has
obtained a consumer report that a
servicer has requested from a consumer
reporting agency.
*
*
*
*
*
Russell Vought,
Acting Director, Consumer Financial
Protection Bureau.
[FR Doc. 2025–08643 Filed 5–15–25; 8:45 am]
BILLING CODE 4810–AM–P
VerDate Sep<11>2014
15:12 May 15, 2025
Jkt 265001
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No. FAA–2024–2588; Airspace
Docket No. 24–AGL–17]
RIN 2120–AA66
Amendment of Jet Routes J–26, J–64
and J–181, and VOR Federal Airways
V–10 and V–156; and Revocation of
VOR Federal Airway V–262 in the
Vicinity of Bradford, IL
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This action amends Jet Routes
J–26, J–64, and J–181, and Very High
Frequency Omnidirectional Range
(VOR) Federal Airways V–10 and V–
156; and revokes VOR Federal Airway
V–262. The FAA is taking this action
due to the planned decommissioning of
the VOR portion of the Bradford, IL
(BDF), VOR/Tactical Air Navigation
(VORTAC) navigational aid (NAVAID).
The Bradford VOR is being
decommissioned in support of the
FAA’s VOR Minimum Operational
Network (MON) program.
DATES: Effective date 0901 UTC, August
7, 2025. The Director of the Federal
Register approves this incorporation by
reference action under 1 CFR part 51,
subject to the annual revision of FAA
Order JO 7400.11 and publication of
conforming amendments.
ADDRESSES: A copy of the Notice of
Proposed Rulemaking (NPRM), all
comments received, this final rule, and
all background material may be viewed
online at www.regulations.gov using the
FAA Docket number. Electronic
retrieval help and guidelines are
available on the website. It is available
24 hours each day, 365 days each year.
FAA Order JO 7400.11J, Airspace
Designations and Reporting Points, and
subsequent amendments can be viewed
online at www.faa.gov/air_traffic/
publications/. You may also contact the
Rules and Regulations Group, Policy
Directorate, Federal Aviation
Administration, 600 Independence
Avenue SW, Washington, DC 20597;
telephone: (202) 267–8783.
FOR FURTHER INFORMATION CONTACT:
Colby Abbott, Rules and Regulations
Group, Policy Directorate, Federal
Aviation Administration, 600
Independence Avenue SW, Washington,
DC 20597; telephone: (202) 267–8783.
SUPPLEMENTARY INFORMATION:
SUMMARY:
PO 00000
Frm 00043
Fmt 4700
Sfmt 4700
20795
Authority for This Rulemaking
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
Subtitle I, Section 106 describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority. This rulemaking is
promulgated under the authority
described in Subtitle VII, Part A,
Subpart I, Section 40103. Under that
section, the FAA is charged with
prescribing regulations to assign the use
of the airspace necessary to ensure the
safety of aircraft and the efficient use of
airspace. This regulation is within the
scope of that authority as it modifies the
National Airspace System (NAS) as
necessary to preserve the safe and
efficient flow of air traffic.
History
The FAA published an NPRM for
Docket No. FAA–2024–2588 in the
Federal Register (89 FR 97572;
December 9, 2024), proposing to amend
Jet Routes J–26, J–64, and J–181, and
VOR Federal Airways V–10 and V–156;
and revoke VOR Federal Airway V–262
due to the planned decommissioning of
the VOR portion of the Bradford, IL,
VORTAC NAVAID. Interested parties
were invited to participate in this
rulemaking effort by submitting written
comments on the proposal. No
comments were received.
Incorporation by Reference
Jet Routes are published in paragraph
2004 and VOR Federal Airways are
published in paragraph 6010(a) of FAA
Order JO 7400.11, Airspace
Designations and Reporting Points,
which is incorporated by reference in 14
CFR 71.1 on an annual basis. This
document amends the current version of
that order, FAA Order JO 7400.11J,
dated July 31, 2024, and effective
September 15, 2024. These amendments
will be published in the next update to
FAA Order JO 7400.11. FAA Order JO
7400.11J is publicly available as listed
in the ADDRESSES section of this
document.
FAA Order JO 7400.11J lists Class A,
B, C, D, and E airspace areas, air traffic
service routes, and reporting points.
The Rule
This action amends 14 CFR part 71 by
amending Jet Routes J–26, J–64, and J–
181, and VOR Federal Airways V–10
and V–156; and revoking VOR Federal
Airway V–262 due to the planned
decommissioning of the VOR portion of
the Bradford, IL, VORTAC NAVAID.
The Air Traffic Service (ATS) route
actions are described below.
E:\FR\FM\16MYR1.SGM
16MYR1
]]>Agencies
- CONSUMER FINANCIAL PROTECTION BUREAU
[Federal Register Volume 90, Number 94 (Friday, May 16, 2025)]
[Rules and Regulations]
[Pages 20791-20795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08643]
=======================================================================
-----------------------------------------------------------------------
CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1024
[Docket No. CFPB-2025-0014]
RIN 3170-AB42
Protections for Borrowers Affected by the COVID-19 Emergency
Under the Real Estate Settlement Procedures Act (RESPA), Regulation X;
Rescission
AGENCY: Consumer Financial Protection Bureau.
ACTION: Interim final rule; request for public comment.
-----------------------------------------------------------------------
SUMMARY: This interim final rule (IFR) rescinds the final rule
``Protections for Borrowers Affected by the COVID-19 Emergency Under
the Real Estate Settlement Procedures Act (RESPA), Regulation X.''
DATES: This IFR is effective on July 15, 2025. Comments must be
received on or before June 16, 2025.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2025-0014, by any of the following
methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. A brief summary of
this document will be available at https://www.regulations.gov/docket/CFPB-2025-0014.
Email: [email protected].
Include Docket No. CFPB-2025-0014 in the subject line of the message.
Mail/Hand Delivery/Courier: Comment Intake--Protections
for Borrowers Affected by the COVID-19 Emergency Under the Real Estate
Settlement Procedures Act (RESPA), Regulation X, Rescission, c/o Legal
Division Docket Manager, Consumer Financial Protection Bureau, 1700 G
Street NW, Washington, DC 20552.
Instructions: The CFPB encourages the early submission of comments.
All submissions should include the agency name and docket number.
Additionally, where the Bureau has asked for specific comment on a
topic, commentors should seek to highlight the topic to which its
comment is applicable. Because paper mail is subject to delay,
commenters are encouraged to submit
[[Page 20792]]
comments electronically. In general, all comments received will be
posted without change to https://www.regulations.gov. All submissions,
including attachments and other supporting materials, will become part
of the public record and subject to public disclosure. Proprietary
information or sensitive personal information, such as account numbers
or Social Security numbers, or names of other individuals, should not
be included. Submissions will not be edited to remove any identifying
or contact information.
FOR FURTHER INFORMATION CONTACT: Dave Gettler, Paralegal Specialist,
Office of Regulations, at 202-435-7700. If you require this document in
an alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION: This IFR rescinds ``Protections for
Borrowers Affected by the COVID-19 Emergency Under the Real Estate
Settlement Procedures Act (RESPA), Regulation X,'' 86 FR 34848 (June
30, 2021) (2021 COVID RESPA Rule), for two reasons:
First, the 2021 COVID RESPA Rule adopted temporary procedural
safeguards related to mortgage foreclosure, temporarily permitted
mortgage servicers to offer certain loan modifications made available
to borrowers experiencing a COVID-19 related hardship, and finalized
certain temporary amendments to Regulation X related to the COVID-19
pandemic. The rule stated that the temporary procedural safeguards do
not apply if a servicer makes the first notice or filing required by
applicable law for any judicial or non-judicial foreclosure process on
or after January 1, 2022. In addition, the rule stated that the
temporary COVID-19 related live contact requirements would only be
required until October 1, 2022. On April 10, 2023, then-President Biden
signed a joint resolution of Congress declaring that ``the national
emergency declared by the finding of the President on March 13, 2020''
related to the COVID-19 pandemic ``is hereby terminated.'' See Public
Law 118-3 (Apr. 10, 2023). The Bureau finds that it has good cause to
remove, without prior notice and comment, language relating to the
COVID-19 pandemic added by the 2021 COVID RESPA Rule, as prior notice
and comment is unnecessary. Both the temporary additional early
intervention live contact requirements and the temporary special COVID-
19 loss mitigation procedural safeguards have been sunset by their own
terms, and the COVID-19 Public Health Emergency expired on May 11,
2023. Thus, borrowers and servicers are no longer utilizing these
safeguards. Moreover, the Bureau proposed a rule on July 24, 2024 (89
FR 60204), that would provide additional flexibility to servicers to
offer streamlined loss mitigation options when borrowers seek payment
assistance. As part of the revised framework, the proposal would have
removed the provisions implemented in response to the COVID-19
pandemic, and the Bureau did not receive public comments on the
proposed removal of those provisions. As part of any future rulemaking,
the Bureau would consider and address comments received in response to
the 2024 proposed rule, including comments related to applying the loss
mitigation lessons learned from the COVID-19 pandemic.
Second, it is the policy of the Bureau to streamline regulatory
requirements to reduce burdens on the American public. The Bureau has
determined that, in light of the end of the COVID-19 pandemic, these
regulations needlessly complicate Regulation X without commensurate
benefits.
Section 1022 Analysis
In developing this rule, the Bureau has considered the potential
benefits, costs, and impacts as required by section 1022(b)(2)(A) of
the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C.
5512(b)(2)(A). This rule does not impose any costs to consumers or
covered persons or have any direct impact on consumers' access to
consumer financial products or services. Further, it has no unique
impact on insured depository institutions or insured credit unions with
less than $10 billion in assets, as described in section 1026(a) of the
CFPA. Finally, it does not have any unique impact on rural consumers.
Legal Authority
The Bureau is issuing this IFR pursuant to its authority under 12
U.S.C. 2617(a), 2506(j)(3), and 2605(k)(1)(E); 12 U.S.C. 5512(b)(1);
and 12 U.S.C. 5532.
List of Subjects in 12 CFR Part 1024
Banks, Banking, Condominiums, Consumer protection, Credit unions,
Housing, Mortgage insurance, Mortgages, National banks, Reporting and
recordkeeping requirements, Savings associations.
Authority and Issuance
For the reasons set forth in the preamble, the Bureau amends
Regulation X, 12 CFR part 1024, as set forth below:
PART 1024--REAL ESTATE SETTLEMENT PROCEDURES ACT (REGULATION X)
0
1. The authority citation for part 1024 continues to read as follows:
Authority: 12 U.S.C. 2603-2605, 2607, 2609, 2617, 5512, 5532,
5581.
Subpart C--Mortgage Servicing
Sec. 1024.31 [Amended]
0
2. Amend Sec. 1024.31 by removing the definition of ``COVID-19-related
hardship.''
0
3. Amend Sec. 1024.39 by:
0
a. Revising paragraph (a); and
0
b. Removing paragraph (e).
The revision reads as follows:
Sec. 1024.39 Early intervention requirements for certain borrowers.
(a) Live contact. Except as otherwise provided in this section, a
servicer shall establish or make good faith efforts to establish live
contact with a delinquent borrower no later than the 36th day of a
borrower's delinquency and again no later than 36 days after each
payment due date so long as the borrower remains delinquent. Promptly
after establishing live contact with a borrower, the servicer shall
inform the borrower about the availability of loss mitigation options,
if appropriate.
* * * * *
0
4. Amend Sec. 1024.41 by:
0
a. Revising paragraphs (c)(2)(i) and (c)(2)(v)(A)(1); and
0
b. Removing paragraphs (c)(2)(vi) and (f)(3).
The revisions read as follows:
Sec. 1024.41 Loss mitigation procedures.
* * * * *
(c) * * *
(2) * * *
(i) In general. Except as set forth in paragraphs (c)(2)(ii),
(iii), and (v) of this section, a servicer shall not evade the
requirement to evaluate a complete loss mitigation application for all
loss mitigation options available to the borrower by offering a loss
mitigation option based upon an evaluation of any information provided
by a borrower in connection with an incomplete loss mitigation
application.
* * * * *
(v) * * *
(A) * * *
(1) The loss mitigation option permits the borrower to delay paying
covered amounts until the mortgage loan is refinanced, the mortgaged
property is sold, the term of the mortgage loan ends, or, for a
mortgage loan insured by the Federal Housing Administration, the
[[Page 20793]]
mortgage insurance terminates. For purposes of this paragraph
(c)(2)(v)(A)(1), ``covered amounts'' includes, without limitation, all
principal and interest payments forborne under a payment forbearance
program made available to borrowers experiencing a COVID-19-related
hardship, including a payment forbearance program made pursuant to the
Coronavirus Economic Stabilization Act, section 4022 (15 U.S.C. 9056);
it also includes, without limitation, all other principal and interest
payments that are due and unpaid by a borrower experiencing COVID-19-
related hardship. For purposes of this paragraph (c)(2)(v)(A)(1), ``the
term of the mortgage loan'' means the term of the mortgage loan
according to the obligation between the parties in effect when the
borrower is offered the loss mitigation option.
* * * * *
0
5. Amend supplement I by:
0
a. Under Sec. 1024.39--Early Intervention Requirements for Certain
Borrowers, revising 39(a) Live Contact; and
0
b. Under Sec. 1024.41--Loss Mitigation Procedures:
0
i. Revising 41(b)(1) Complete Loss Mitigation Application; and
0
ii. Removing 41(f)(3) Temporary Special COVID-19 Loss Mitigation
Procedural Safeguards and 41(f)(3)(ii)(C) Unresponsive Borrower.
The revisions read as follows:
Supplement I to Part 1024--Official Bureau Interpretations
* * * * *
Subpart C--Mortgage Servicing
* * * * *
Sec. 1024.39 Early Intervention Requirements for Certain Borrowers
39(a) Live Contact.
1. Delinquency. Section 1024.39 requires a servicer to establish or
attempt to establish live contact no later than the 36th day of a
borrower's delinquency. This provision is illustrated as follows:
i. Assume a mortgage loan obligation with a monthly billing cycle
and monthly payments of $2,000 representing principal, interest, and
escrow due on the first of each month.
A. The borrower fails to make a payment of $2,000 on, and makes no
payment during the 36-day period after, January 1. The servicer must
establish or make good faith efforts to establish live contact not
later than 36 days after January 1--i.e., on or before February 6.
B. The borrower makes no payments during the period January 1
through April 1, although payments of $2,000 each on January 1,
February 1, and March 1 are due. Assuming it is not a leap year, the
borrower is 90 days delinquent as of April 1. The servicer may time its
attempts to establish live contact such that a single attempt will meet
the requirements of Sec. 1024.39(a) for two missed payments. To
illustrate, the servicer complies with Sec. 1024.39(a) if the servicer
makes a good faith effort to establish live contact with the borrower,
for example, on February 5 and again on March 25. The February 5
attempt meets the requirements of Sec. 1024.39(a) for both the January
1 and February 1 missed payments. The March 25 attempt meets the
requirements of Sec. 1024.39(a) for the March 1 missed payment.
ii. A borrower who is performing as agreed under a loss mitigation
option designed to bring the borrower current on a previously missed
payment is not delinquent for purposes of Sec. 1024.39.
iii. During the 60-day period beginning on the effective date of
transfer of the servicing of any mortgage loan, a borrower is not
delinquent for purposes of Sec. 1024.39 if the transferee servicer
learns that the borrower has made a timely payment that has been
misdirected to the transferor servicer and the transferee servicer
documents its files accordingly. See Sec. 1024.33(c)(1) and comment
33(c)(1)-2.
iv. A servicer need not establish live contact with a borrower
unless the borrower is delinquent during the 36 days after a payment
due date. If the borrower satisfies a payment in full before the end of
the 36-day period, the servicer need not establish live contact with
the borrower. For example, if a borrower misses a January 1 due date
but makes that payment on February 1, a servicer need not establish or
make good faith efforts to establish live contact by February 6.
2. Establishing live contact. Live contact provides servicers an
opportunity to discuss the circumstances of a borrower's delinquency.
Live contact with a borrower includes speaking on the telephone or
conducting an in-person meeting with the borrower but not leaving a
recorded phone message. A servicer may rely on live contact established
at the borrower's initiative to satisfy the live contact requirement in
Sec. 1024.39(a). Servicers may also combine contacts made pursuant to
Sec. 1024.39(a) with contacts made with borrowers for other reasons,
for instance, by telling borrowers on collection calls that loss
mitigation options may be available.
3. Good faith efforts. Good faith efforts to establish live contact
consist of reasonable steps, under the circumstances, to reach a
borrower and may include telephoning the borrower on more than one
occasion or sending written or electronic communication encouraging the
borrower to establish live contact with the servicer. The length of a
borrower's delinquency, as well as a borrower's failure to respond to a
servicer's repeated attempts at communication pursuant to Sec.
1024.39(a), are relevant circumstances to consider. For example,
whereas ``good faith efforts'' to establish live contact with regard to
a borrower with two consecutive missed payments might require a
telephone call, ``good faith efforts'' to establish live contact with
regard to an unresponsive borrower with six or more consecutive missed
payments might require no more than including a sentence requesting
that the borrower contact the servicer with regard to the delinquencies
in the periodic statement or in an electronic communication. Comment
39(a)-6 discusses the relationship between live contact and the loss
mitigation procedures set forth in Sec. 1024.41.
4. Promptly inform if appropriate.
i. Servicer's determination. It is within a servicer's reasonable
discretion to determine whether informing a borrower about the
availability of loss mitigation options is appropriate under the
circumstances. The following examples demonstrate when a servicer has
made a reasonable determination regarding the appropriateness of
providing information about loss mitigation options.
A. A servicer provides information about the availability of loss
mitigation options to a borrower who notifies a servicer during live
contact of a material adverse change in the borrower's financial
circumstances that is likely to cause the borrower to experience a
long-term delinquency for which loss mitigation options may be
available.
B. A servicer does not provide information about the availability
of loss mitigation options to a borrower who has missed a January 1
payment and notified the servicer that full late payment will be
transmitted to the servicer by February 15.
ii. Promptly inform. If appropriate, a servicer may inform
borrowers about the availability of loss mitigation options orally, in
writing, or through electronic communication, but the servicer must
provide such information promptly after the servicer establishes live
contact. A servicer need not notify a borrower about any particular
loss mitigation options at this time; if appropriate, a
[[Page 20794]]
servicer need only inform borrowers generally that loss mitigation
options may be available. If appropriate, a servicer may satisfy the
requirement in Sec. 1024.39(a) to inform a borrower about loss
mitigation options by providing the written notice required by Sec.
1024.39(b)(1), but the servicer must provide such notice promptly after
the servicer establishes live contact.
5. Borrower's representative. Section 1024.39 does not prohibit a
servicer from satisfying its requirements by establishing live contact
with and, if applicable, providing information about loss mitigation
options to a person authorized by the borrower to communicate with the
servicer on the borrower's behalf. A servicer may undertake reasonable
procedures to determine if a person that claims to be an agent of a
borrower has authority from the borrower to act on the borrower's
behalf, for example, by requiring a person that claims to be an agent
of the borrower to provide documentation from the borrower stating that
the purported agent is acting on the borrower's behalf.
6. Relationship between live contact and loss mitigation
procedures. If the servicer has established and is maintaining ongoing
contact with the borrower under the loss mitigation procedures under
Sec. 1024.41, including during the borrower's completion of a loss
mitigation application or the servicer's evaluation of the borrower's
complete loss mitigation application, or if the servicer has sent the
borrower a notice pursuant to Sec. 1024.41(c)(1)(ii) that the borrower
is not eligible for any loss mitigation options, the servicer complies
with Sec. 1024.39(a) and need not otherwise establish or make good
faith efforts to establish live contact. A servicer must resume
compliance with the requirements of Sec. 1024.39(a) for a borrower who
becomes delinquent again after curing a prior delinquency.
* * * * *
Sec. 1024.41 Loss Mitigation Procedures
* * * * *
41(b)(1) Complete loss mitigation application.
1. In general. A servicer has flexibility to establish its own
application requirements and to decide the type and amount of
information it will require from borrowers applying for loss mitigation
options. In the course of gathering documents and information from a
borrower to complete a loss mitigation application, a servicer may stop
collecting documents and information for a particular loss mitigation
option after receiving information confirming that, pursuant to any
requirements established by the owner or assignee of the borrower's
mortgage loan, the borrower is ineligible for that option. A servicer
may not stop collecting documents and information for any loss
mitigation option based solely upon the borrower's stated preference
but may stop collecting documents and information for any loss
mitigation option based on the borrower's stated preference in
conjunction with other information, as prescribed by any requirements
established by the owner or assignee. A servicer must continue to
exercise reasonable diligence to obtain documents and information from
the borrower that the servicer requires to evaluate the borrower as to
all other loss mitigation options available to the borrower. For
example:
i. Assume a particular loss mitigation option is only available for
borrowers whose mortgage loans were originated before a specific date.
Once a servicer receives documents or information confirming that a
mortgage loan was originated after that date, the servicer may stop
collecting documents or information from the borrower that the servicer
would use to evaluate the borrower for that loss mitigation option, but
the servicer must continue its efforts to obtain documents and
information from the borrower that the servicer requires to evaluate
the borrower for all other available loss mitigation options.
ii. Assume applicable requirements established by the owner or
assignee of the mortgage loan provide that a borrower is ineligible for
home retention loss mitigation options if the borrower states a
preference for a short sale and provides evidence of another applicable
hardship, such as military Permanent Change of Station orders or an
employment transfer more than 50 miles away. If the borrower indicates
a preference for a short sale or, more generally, not to retain the
property, the servicer may not stop collecting documents and
information from the borrower pertaining to available home retention
options solely because the borrower has indicated such a preference,
but the servicer may stop collecting such documents and information
once the servicer receives information confirming that the borrower has
an applicable hardship under requirements established by the owner or
assignee, such as military Permanent Change of Station orders or
employment transfer.
2. When an inquiry or prequalification request becomes an
application. A servicer is encouraged to provide borrowers with
information about loss mitigation programs. If in giving information to
the borrower, the borrower expresses an interest in applying for a loss
mitigation option and provides information the servicer would evaluate
in connection with a loss mitigation application, the borrower's
inquiry or prequalification request has become a loss mitigation
application. A loss mitigation application is considered expansively
and includes any ``prequalification'' for a loss mitigation option. For
example, if a borrower requests that a servicer determine if the
borrower is ``prequalified'' for a loss mitigation program by
evaluating the borrower against preliminary criteria to determine
eligibility for a loss mitigation option, the request constitutes a
loss mitigation application.
3. Examples of inquiries that are not applications. The following
examples illustrate situations in which only an inquiry has taken place
and no loss mitigation application has been submitted:
i. A borrower calls to ask about loss mitigation options and
servicer personnel explain the loss mitigation options available to the
borrower and the criteria for determining the borrower's eligibility
for any such loss mitigation option. The borrower does not, however,
provide any information that a servicer would consider for evaluating a
loss mitigation application.
ii. A borrower calls to ask about the process for applying for a
loss mitigation option but the borrower does not provide any
information that a servicer would consider for evaluating a loss
mitigation application.
4. Although a servicer has flexibility to establish its own
requirements regarding the documents and information necessary for a
loss mitigation application, the servicer must act with reasonable
diligence to collect information needed to complete the application. A
servicer must request information necessary to make a loss mitigation
application complete promptly after receiving the loss mitigation
application. Reasonable diligence for purposes of Sec. 1024.41(b)(1)
includes, without limitation, the following actions:
i. A servicer requires additional information from the applicant,
such as an address or a telephone number to verify employment; the
servicer contacts the applicant promptly to obtain such information
after receiving a loss mitigation application;
ii. Servicing for a mortgage loan is transferred to a servicer and
the borrower makes an incomplete loss mitigation application to the
transferee servicer after the transfer; the transferee
[[Page 20795]]
servicer reviews documents provided by the transferor servicer to
determine if information required to make the loss mitigation
application complete is contained within documents transferred by the
transferor servicer to the servicer; and
iii. A servicer offers a borrower a short-term payment forbearance
program or a short-term repayment plan based on an evaluation of an
incomplete loss mitigation application and provides the borrower the
written notice pursuant to Sec. 1024.41(c)(2)(iii). If the borrower
remains in compliance with the short-term payment forbearance program
or short-term repayment plan, and the borrower does not request further
assistance, the servicer may suspend reasonable diligence efforts until
near the end of the payment forbearance program or repayment plan.
However, if the borrower fails to comply with the program or plan or
requests further assistance, the servicer must immediately resume
reasonable diligence efforts. Near the end of a short-term payment
forbearance program offered based on an evaluation of an incomplete
loss mitigation application pursuant to Sec. 1024.41(c)(2)(iii), and
prior to the end of the forbearance period, if the borrower remains
delinquent, a servicer must contact the borrower to determine if the
borrower wishes to complete the loss mitigation application and proceed
with a full loss mitigation evaluation.
5. Information not in the borrower's control. A loss mitigation
application is complete when a borrower provides all information
required from the borrower notwithstanding that additional information
may be required by a servicer that is not in the control of a borrower.
For example, if a servicer requires a consumer report for a loss
mitigation evaluation, a loss mitigation application is considered
complete if a borrower has submitted all information required from the
borrower without regard to whether a servicer has obtained a consumer
report that a servicer has requested from a consumer reporting agency.
* * * * *
Russell Vought,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2025-08643 Filed 5-15-25; 8:45 am]
BILLING CODE 4810-AM-P
