03.6.2014 | Articles / Publications
Inside Counsel: Litigation Exposure Under the 2013 Dodd-Frank Mortgage Servicing Regulations Part III, March 2014
Today, we evaluate one more area of specific challenges: those related to requests for payoff statements, and then we will wrap-up by taking a look at the interface of new loss mitigation and mortgage servicing regulations with the foreclosure process.
Challenges related to requests for payoff statements
With regard to payoff requests, the Consumer Financial Protection Bureau’s (CFPB) commentary on this rule states that a “payoff balance request is any request from a consumer or appropriate party acting on behalf of the consumer, which inquires into the total amount outstanding on the loan, or the amount needed to pay off the loan.” Payoff information provided must be accurate “when issued.” This means that payoff information which is thereafter found to be inaccurate due to a payment reversal or other unforeseen circumstance will still fulfill the servicer’s obligation.
To view the article in its entirety on Inside Counsel, please click here.