ICBA, Coalition to CFPB: Withdraw Bankruptcy Billing Statements

Feb 08, 2018
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ICBA and other financial trade groups called on the Consumer Financial Protection Bureau to repeal or change a requirement that mortgage servicers send monthly billing statements to borrowers in bankruptcy.

In a joint letter, the coalition said the provision of the CFPB’s 2016 mortgage-servicing rule is redundant and needlessly confusing and would subject servicers to liability under the bankruptcy code.

While most community banks are small servicers and therefore exempt from the statement requirements, those that service more than 5,000 loans or buy mortgage loans from others are subject to the periodic statements rule and would be required to implement this new rule in April.

Read Joint Letter