Regulatory Alerts2012-06-20
Interagency Guidance on Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders
The Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, and four other federal agencies issued guidance to mortgage servicers to address risks for military homeowners with Permanent Change of Station orders. The document prohibits specific unfair or deceptive practices, including failing to provide accurate information on assistance programs, requiring waivers of Servicemembers Civil Relief Act rights, or advising current borrowers to skip payments to qualify for aid. Servicers are required to train employees, maintain appropriate policies, and ensure timely, transparent communication regarding assistance requests to avoid supervisory or enforcement actions.
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