Freddie Mac Reminds of CFPB Rules and Selling/Servicing Requirements
On January 3, Freddie Mac released an update titled Selling and Servicing Requirements in Response to CFPB Rules Take Effect This Month.
Selling and Servicing Requirements in Response to CFPB Rules Take Effect This Month
The implementation of new mortgage market rules issued by the Consumer Financial Protection Bureau (CFPB) is just a few days away. We are reminding Seller/Servicers that our revised selling and servicing requirements, announced in response to several of the CFPB final rules, also become effective this month, when the CFPB final rules go into effect. The CFPB final rules implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
At the direction of the Federal Housing Finance Agency and through several Single-Family Seller/Servicer Guide (Guide) Bulletins in 2013, we announced requirement changes related to the following:
- Ability-to-repay (ATR) and Qualified Mortgage (QM) standards
- Disclosure of property valuations under the Equal Credit Opportunity Act
- Mortgage servicing
We encourage you to visit our New Regulatory Requirements for Sellers and Servicers page and take advantage of the available resources to help you become more familiar with our revised selling and servicing requirements.
While we remain committed to being more transparent with our requirements, it is important to remember that you are obligated to comply with applicable CFPB requirements at origination and throughout the servicing process in addition to our requirements in the Guide and other Purchase Documents.
For the new year, one of our continuing goals is to make it easier for you to do business with Freddie Mac. We will continue to focus on being more transparent in our requirements so you can have greater purchase certainty and providing you with comprehensive support to help you adopt and implement changes.
Please click here to view the online update.
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