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Roundtable, Housing Policy Council React to CFPB’s Final Rule on Mortgage Servicing


WASHINGTON, DC – January 18, 2012 – (RealEstateRama) — The Financial Services Roundtable and its Housing Policy Council issued the following statement regarding the final mortgage servicing rule issued today by the Consumer Financial Protection Bureau (CFPB):

“The Financial Services Roundtable, its Housing Policy Council, and our member companies support strong uniform national mortgage servicing standards. All participants in the housing and mortgage markets have been working hard to complete the recovery from the housing crisis. National mortgage servicing standards are necessary to help ensure a stable housing market for the future. An initial review of the new servicing regulation shows it includes some sound reforms, but also presents some real concerns.”

“First it is important to note that help for at-risk homeowners did not just begin with today’s announcement. Since the start of the crisis in 2007, our members have worked both individually and through cooperative outreach efforts like the HOPE NOW Alliance to reach and assist at-risk homeowners. The industry has provided approximately 6 million loan modifications to homeowners since 2007. Outreach and loan modification efforts have been unprecedented in both reach and scope and will continue through 2013.”

“The rule released today is 1,200 pages and we look forward to reviewing all the provisions in this detailed regulation. Of special importance to establishing uniform national standards to protect consumers is that the rule’s requirements should be fully consistent with the mortgage servicing rules established in the State Attorneys General’s settlement, and the federal OCC consent agreements. Consistent standards across the board will help ensure protection and good service for American homeowners.”

“We urge the CFPB to allow the mortgage industry sufficient time to implement the mortgage servicing and other important new rules and to deliver the quality customer experience that our members are committed to providing. Our compliance and risk management programs require the investment of both time and money before new processes and documents are introduced to our customers including the development, testing – and retesting – of systems, disclosures , associate training, and many other tasks, all of which our members intend to do. We want to work with the Bureau on these issues and to develop needed clarifications to ensure the Rule meets its intended goals.”

The Roundtable’s Housing Policy Council is made up of thirty companies that are among the nation’s leaders in mortgage finance. Member companies originate seventy-five percent of the mortgages for American home buyers. Member companies participate in the Council through the senior mortgage executive in their company.
The Financial Services Roundtable represents 100 integrated financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.
Roundtable member companies provide fuel for America’s economic engine, accounting directly for $98.4 trillion in managed assets, $1.1 trillion in revenue, and 2.4 million jobs.

Elise Brooks Perkins

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