Best Practices and Procedures for Complying with CFPB Loss Mitigation and Loan Modification; and Navigating the Inconsistencies Amongst the CFPB Rules, HAMP Guidelines and State-Level Initiatives Regarding Loss Mitigation

November 20, 2014 10:10am

Steven R. Smith
Partner
Bryan Cave LLP

Steven Frie
Director, Structured Finance - Servicer Evaluations
Standard & Poor's Rating Services

Colin F. Jones
Vice President & Counsel - Legal Department
TD Bank, N.A

John Grissom
Senior Vice President and Managing Counsel
Wells Fargo Law Department Consumer Lending and Corporate Regulatory Division

• Ensuring compliance with the new CFPB requirements
related to:
 Loss Mitigation
– Processing applications for loss mitigation options
– Issuing notices for loss mitigation options
– Servicer notification of foreclosure alternatives
– “Fair and prompt review” of loss mitigation applications
– Servicer responses to incomplete/complete loss    mitigation applications
– Issuing rejections of loss mitigation applications; and   handling borrower appeals
 Loan Modification
– Processing applications for loan modifications
– Considering and responding to proposed alternatives to   foreclosure
– When does someone have to be licensed as a loan    officer to handle a modification, and how far can they
  go before they have to be licensed as a loan officer?
• Recent enforcement trends and arising litigation relating to these requirements
• Examining the consumer response to this new regulation – are consumers taking advantage of these new protections? What types of consumer complaints are being seen and how to avoid them
• Implementing loss mitigation processes/procedures that are easy, efficient and cost-effective while simultaneously meeting all governing requirements
• Assessing the recent/potential issues/implications of progressive clients providing blanket approvals for attorneys to contact financial institutions regarding loss mitigation
• Understanding and navigating the inconsistencies between the CFPB Rules, HAMP and varying State Laws regarding loss mitigation