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Servicing Rules Could Force Institutions Out of the Business

January 18, 2013

Experts say the Consumer Financial Protection Bureau's new mortgage servicing rules, released Jan. 17, could force some servicers to leave the business altogether if they find complying with the regulations too cost-prohibitive.

Experts say the Consumer Financial Protection Bureau's new mortgage servicing rules, released Jan. 17, could force some servicers to leave the business altogether if they find complying with the regulations too cost-prohibitive. The comprehensive new rules address a number of practices, from how servicers communicate with delinquent borrowers to when they can initiate a foreclosure proceeding. A major fear among servicers is whether they can get everything together before the regulations go into effect in a year. Some analysts say a potential exodus from the business would not necessarily be a bad thing and could create a better system by creating an opportunity to change the way servicing is done.

Author: American Banker (01/18/13) Berry, Kate; Witkowski, Rachel

Source: "Servicing Rules Could Force Institutions Out of the Business"

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