Unprecedented Changes to Mortgage Regulations Coming in 2014

If mortgage regulations matter to you or your firm, get ready for sweeping changes in 2014. The Consumer Financial Protection Bureau (CFPB) has issued several new mortgage servicing rules slated to take effect in January 2014. Reforms stemming from the Dodd-Frank Act and Consumer Protection Act will fundamentally change how banks, credit unions, and mortgage companies manage their servicing operations. Servicing was once largely an operational issue; now it is a compliance issue that is subject to regulatory enforcement.

Mortgage Regulations 2014 ChangesAt Digital University, we are working tirelessly to make sure our clients stay ahead of the curve with updated course content and new courses, coming this month. In implementing provisions of Dodd-Frank, the CFPB has issued its final rule on Mortgage Servicing Rules under the Real Estate Settlement Procedures Act, Reg. X (753 pages) and Mortgage Servicing Rules under the Truth in Lending Act, Reg. Z (376 pages). These two massive regulations have kept us busy for weeks, as we await various interpretations and reference materials. Some of the regulations have already been incorporated into our course Servicemembers Civil Relief Act.

Topics covered within new mortgage regulations

These mortgage regulations cover a host of different topics including:

  • Periodic mortgage statements
  • Disclosures for ARMs
  • Prompt crediting of mortgage loan payments
  • Requests for mortgage loan payoff statements
  • Error resolution and information requests
  • Protections relating to force-placed insurance
  • General servicer policies and procedures
  • Early intervention with delinquent borrowers
  • Continuity of contact
  • Procedures for evaluating
  • Responding to loss mitigation applications

New courses

The result of our efforts is the addition of three new courses, designed exclusively for mortgage loan servicing personnel. They cover each of the mortgage regulations issues discussed above and several others.  These courses include:

  1. Loan Servicing Compliance – Regulation X
  2. Loan Servicing Compliance – Regulation Z
  3. Loan Servicing Loss Mitigation

We are on target for a mid-September delivery of these courses available to your staff. The only consolation is that the regulations are coming out after the mortgage servicing crisis has passed.  The volume of delinquent loans has been trending down for several years.


Kenneth Thygerson
Digital University, Inc.