NCUA Issues Guidance Concerning Mortgage Servicing Practices that Impact Servicemembers
July 3, 2012
July 3, 2012
The National Credit Union Administration (NCUA), Federal Reserve Board (FRB), Consumer Financial Protection Bureau (CFPB) and others jointly issued guidance concerning mortgage servicing practices that may pose risks to homeowners serving in the military.
Specifically, the guidance addresses risks related to military homeowners who have informed their loan servicer that they have received Permanent Change of Station (PCS) orders and who might seek assistance with their mortgage loans.
The agencies note concerns with practices such as asking military members with PCS orders to waive their legal rights under the Servicemembers Civil Relief Act, failing to make homeowners aware of available assistance options (such as Making Home Affordable), and failing to communicate with homeowners who have requested assistance, among others.
The agencies state that if a servicer has engaged in any acts or practices that are unfair, deceptive, abusive, or otherwise violate consumer financial laws or regulations, they will take appropriate enforcement actions.
The guidance is consistent with the Servicemembers Civil Relief Act and with guidance and examination procedures previously issued by the Federal Reserve regarding working with homeowners who are financially unable to continue meeting their mortgage payments.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.
Posted in NCUA.