CFPB Flags Lapses in Reg X Compliance After Disasters

Violations of Regulation X–including the failure of some mortgage servicers to provide certain loss mitigation notices, providing incomplete notices or not providing notices within the time required–are among the examiner observations included in the Consumer Financial Protection Bureau latest “Supervisory Highlights” report.

The bureau said the Reg X violations were caused in part servicers’ challenges in handling a large volume of applications following natural disasters and that given the circumstances, no matters requiring attention were issued.

Other issues flagged in the CFPB report include various regulatory violations related to debt collection, payday loans and monthly payment calculations by student loan servicers.