The federal banking regulators today announced the end of the mortgage servicing supervisory and enforcement flexibility issued in response to the COVID-19 pandemic. In a joint statement, the regulators said they believe the temporary flexibilities authorized in April 2020 are no longer necessary, as servicers have now had “sufficient time” to adjust operations and work with consumers affected by the pandemic. The regulators added that they will resume using their enforcement authority to address noncompliance for violations of Regulation X mortgage servicing rules starting after the date of the joint statement.
They added that when considering any supervisory and enforcement actions, they will continue take into account specific pandemic-related challenges facing servicers and the time it takes to “make operational adjustments” in response to the end of the enforcement flexibility.
In conjunction with the joint statement, the CFPB released a report summarizing its efforts to assist borrowers during the COVID-19 pandemic.
