2601 et. A statement that the borrowers hazard insurance has expired or is expiring (as applicable), that the credit union lacks evidence that the borrower has hazard insurance coverage past the expiration date, and (if applicable) that identifies the type of hazard insurance lacking? A request that the borrower promptly provide the credit union with insurance information? A statement that the transfer does not affect the terms or conditions of the mortgage (except as directly related to servicing) (, Was the notice by the transferor and transferee sent to the borrowers address listed in the mortgage loan documents, unless the borrower notified the credit union of a new address according to the credit unions requirements? Ensure that if the credit union received a complete application, they provided acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving the loss mitigation application. If the credit union is a small servicer, was the cost charged to each borrower of the force-placed insurance less than the amount the credit union would have needed to disburse from the borrowers escrow account to ensure that hazard insurance charges were paid in a timely manner? Determine if the credit union responds to borrower error notices about the servicing of their mortgage loans in compliance with RESPA. (You will be leaving NCUA.gov and accessing a non-NCUA website. WebStatutes, also known as acts, are laws passed by a legislature. Does the HUD-1 or HUD-1A contain the following? 111203 (July 10, 2010) (Dodd-Frank Act) granted rule-making authority under RESPA to the Consumer Financial Protection Bureau (CFPB). If applicable, the reason(s) why the estimated low monthly balance was not reached? Review a sample of loan files that include GFEs to determine the following: Whether the credit union followed GFE application requirements. (, Determine that the initial notice includes all the following information (if applicable) (. 1024.9 Reproduction of settlement statements. became effective on June 20, 1975. Full text of Real Estate Settlement Procedures Act (Regulation X) can be found here. Keep records showing the handling of each borrowers escrow account. (. Specific RESPA and Regulation X provisions relating to the TRID Rule are discussed in more detail on the TILA-RESPA Integrated Disclosure page. Remove all force-placed charges and fees from the borrowers account for the period the coverage overlapped. Revised GFE may be given when changed circumstances or borrower-requested changes cause charges to increase. Regulation N: What it is, How it Works, Example The new servicers name, address, and toll-free or collect call telephone number of the transferor servicer? Other than an attorney, credit reporting agency, or appraiser representing the lender, does the credit union prohibit requiring the borrower use an affiliate? ), Note: If the credit union received the error notice seven or fewer days before a foreclosure sale, the credit union is not required to respond in writing, but must make a good faith attempt to respond orally or in writing to the borrower and either correct the error or state the reason the credit union determined that no error occurred ( 1024.35(f)(2)) (opens new window) Ensure all fees or charges assessed on the borrower related to force-placed insurance are bona fide and reasonable (except for charges subject to state regulation and charges authorized by the Flood Disaster Protection Act of 1973). WebThe Truth in Lending Act ( TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to A statement advising the borrower to review additional information provided in the same mailing (if applicable). Also, identify persons or entities to which the credit union refers settlement services business in connection with a federally related mortgage transaction. Do these policies and procedures ensure that the credit union: Provide accurate and timely disclosures to the borrower? Provides accurate information regarding available loss mitigation options from the owner or assignee of the borrowers loan; Specifically identifies all loss mitigation options a borrower may be eligible for, including identifying, with respect to each owner or assignee, all of the loss mitigation options the credit union may consider when evaluating a borrower, as well as the criteria the credit union should apply for each option; Provides the loss mitigation personnel assigned to the borrowers mortgage loan pursuant to , Identifies the documents and information a borrower must submit to complete a loss mitigation application; and, In response to a complete loss mitigation application, properly evaluates the borrower for all eligible loss mitigation options according to any requirements established by the owner or assignee of the mortgage loan, even if those requirements are beyond the requirements of , Determine whether the credit union maintains policies and procedures for service provider oversight and compliance. (, Ensure the written notice includes all of the following: (. If an acknowledgment was not given, determine if it was not required for one of the following reasons: The credit union corrected the errors asserted and notified the borrower in writing within five days (excluding legal public holidays, Saturdays, and Sundays) of receiving the error notice; (, The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination; (, The error notice related to violations of certain loss mitigation procedures under . The amendments became effective on January 10, 2014. [Not applicable to small servicers.] Did the credit union send a written notice to the borrower within 45 days after borrower became delinquent? Did the credit union provide a reminder notice (i) at least 30 days after mailing or delivering the initial notice, and (ii) at least 15 days before assessing any charges or fees for force-placed insurance if they had received no hazard insurance information? WebThe Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. became effective on June 20, 1975. We encourage you to read the NCUA's The information request is sent more than one year after either the mortgage loan balance was discharged or the credit union transferred the mortgage loan to another servicer? Charges properly itemized for both borrower and seller according to the instructions for completing the HUD-1 or HUD-1A? The final rule also addresses 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. In such cases, consult with the NCUAs Central Office to discuss whether there may be a basis for a UDAAP claim (for unfair, deceptive, or abusive acts or practices). Cleaning Supplies: Secret Ingredients, Hidden Hazards Review the Loan Estimate, Special Information Booklet called Your Home Loan Toolkit, Good Faith Estimate (GFE), Uniform Settlement Statement (HUD-1 or HUD-1A), Closing Disclosure, mortgage servicing transfer disclosure, and affiliated business arrangement disclosure for compliance with the requirements of Regulation X. If the credit union offered the borrower a short term forbearance plan based upon information contained in an incomplete loss mitigation application, and the borrower is performing under the plan, did the credit union refrain from: Making the first notice of filing for any judicial or non-judicial foreclosure process? Whether escrow arrangements exist on mortgage loans. This part, known as Regulation X, is issued by the Bureau of Consumer Financial Protection to implement the Real Estate Settlement Procedures Act of 1974, as WebTitle X, also known as the Residential Lead-Based Paint Reduction Act of 1992, was an act aimed to protect families, and especially young children, from exposure to lead from paint, dust, and soil. (, To extend the acceptance period, if within 14 days, determine if the credit union allowed the borrower to appeal a denial of any loan modification option. Did the credit union refrain from improperly conducting a foreclosure sale or moving for foreclosure judgment before one of the following: The credit union notified the borrower that it had denied the loss mitigation application and, if an appeal was available, either the appeal period expired or the appeal was denied? Through interviews with credit union management and personnel, file reviews, review of Good Faith Estimates, and HUD-1 and HUD-1A, determine if federally related mortgage loan transactions are referred to the credit union by brokers, affiliates, or other parties. 1024.32 General disclosure requirements. Adopt policy and comprehensive procedures for implementing RESPA, including an explanation of the coverage of the regulation, exemptions, disclosure requirements, Section 8 prohibitions, escrow and force-placed insurance rules, servicing standards, and other related requirements. The Bureau has made every effort to ensure the material presented in this resource is accurate; if you are relying on it for legal research, please consult the official editions of those sources to confirm your findings. Copies of any information or documents the borrower provided to the credit union regarding written error notices or loss mitigation. (, Determine if written notification was provided to the borrower within 15 days (excluding legal public holidays, Saturdays, and Sundays) if the credit union withheld documents that included confidential, proprietary, or privileged information. Real Estate Settlement Procedures Act (Regulation X) Give the borrower a reasonable opportunity to complete the application? A statement that the borrower will be charged for insurance the credit union purchases for the time period in which the credit union cannot verify coverage. Renters Federal law requires that before signing a lease for target housing, including most buildings built before 1978, renters must receive the following from your landlord: An EPA-approved information pamphlet on identifying and controlling lead-based paint hazards, Protect Your Family From Lead In Your Home (PDF). Determine if the Loan Estimate, Special Information Booklet called Your Home Loan Toolkit, Written List of Service Providers, Closing Disclosure, and other required disclosures are in a form that complies with RESPA, are properly completed, and provided to applicants/borrowers within required time periods. Note: If a borrower uses a mortgage broker, the mortgage broker must provide the booklet and the lender need not do so. 45 days after sending the renewal notice, did the credit union receive evidence that the borrower had purchased hazard insurance coverage? 2601, et seq.) (, For documents or information created on or after January 10, 2014, determine whether the credit union keeps the following five items for each mortgage loan file in a way that allows the credit union to compile them into a servicing file within five days (. Note: This section of the Procedures only applies to loans not subject to the TILA-RESPA Integrated Disclosure Final Rule, including: reverse mortgages, home equity lines of credit (HELOCs), chattel-dwelling loans such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).