OCC Bulletin 2021-53| November 10, 2021

Mortgage Servicing: Joint Statement on Supervisory and Enforcement Practices Regarding the Mortgage Servicing Rules in Response to the Continuing COVID-19 Pandemic and CARES Act

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state financial regulators (collectively, the agencies) today issued a joint statement regarding mortgage servicing rules. The joint statement communicates to mortgage servicers that the temporary supervisory and enforcement flexibility provided in the April 2020 joint statement no longer applies and the agencies will apply their respective supervisory and enforcement authorities, when appropriate, to address any noncompliance or violations of the Regulation X mortgage servicing rules that occur after the date of this statement.

Note for Community Banks

The joint statement applies to community banks.1

Highlights

  • More than 18 months have passed since the issuance of the April 2020 joint statement. While the COVID-19 pandemic continues to affect consumers and mortgage servicers, the agencies believe the temporary flexibility described in the joint statement is no longer necessary because servicers have had sufficient time to adjust their operations by taking steps to work with consumers affected by the COVID-19 pandemic and developing more robust business continuity and remote work capabilities.
  • The temporary supervisory and enforcement flexibility announced in the April 2020 joint statement no longer applies, and the agencies will apply their respective supervisory and enforcement authorities, when appropriate, to address any noncompliance or violations of the Regulation X mortgage servicing rules that occur after the date of this statement.2

Further Information

Please contact Paul R. Reymann, Director for Consumer Compliance Policy, at (202) 649-5470.

 

Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy

Related Link

1 The term "banks" refers to national banks, federal savings associations, and federal branches and agencies of foreign banking organizations. The OCC has supervisory and enforcement authority with respect to banks with assets of $10 billion or less (12 USC 5516(a)). The Consumer Financial Protection Bureau has supervisory authority with respect to banks with assets above $10 billion (12 USC 5515(a)). The Regulation X mortgage servicing rules are in 12 CFR 1024.

2 These rules include "Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA)," Regulation X (86 Fed. Reg. 34848), which became effective on August 31, 2021.