The Mortgage Bankers Association Wednesday afternoon informed the Consumer Financial Protection Bureau that it has serious concerns about changes the agency might make to current servicing regulations and is asking that smaller firms be exempt from certain rules.
In a new 93-page comment letter, the MBA notes that some of the rules the agency is working on are not even required under the Dodd-Frank Act, the Truth in Lending Act, or RESPA.
It writes: “Nonetheless the [proposed] CFPB rules grant borrowers a private right of action against servicers for failing to follow requirements that were not authored by Congress…” (Private right of action is a reference to civil lawsuits.)
It says the agency should limit its rulemaking to the DFA and asks that CFPB use its exemption authority “to alleviate unduly burdensome statutory requirements.”
Among other things, the trade group asks that the “small servicer exemption” be increased to firms that service $10 billion or less in home mortgages instead of the current threshold of 1,000 loans or less. “The proposed exemption is too narrow,” writes MBA president David Stevens.
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