The Consumer Financial Protection Bureau today issued a final rule related to the timing for servicers sending periodic statements to borrowers in bankruptcy. The rule takes effect on April 19, 2018.
Currently, servicers are required to immediately transition from sending standard statements to sending modified statements when consumers enter into bankruptcy. The final rule replaces the single-billing-cycle exemption with a single-statement exemption, granting servicers more leeway when making this transition. While ABA acknowledged that the single statement exemption addresses some of the issues created by the CFPB’s 2016 final servicing rules, the association remains concerned that servicers still face a number operational compliance challenges.