CFPB “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act” (Reg X)
CFPB did not finalize the initially proposed pre-foreclosure requirements; instead, the final rule provides temporary and a more tailored procedural protection to minimize avoidable foreclosures. Final § 1024.41(f)(3) requires a servicer to ensure that one of three temporary procedural safeguards have been met before making the first notice or filing because of delinquency:
The CFPB proposes to refer to these protections as Temporary Special COVID-19 Loss Mitigation Procedural Safeguards. These safeguards are applicable only if
This temporary provision will expire on January 1, 2022, meaning that the procedural safeguards in § 1024.41(f)(3) would not be applicable if a servicers makes the of the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process on or after January 1, 2022.
The final rule is effective on August 31, 2021.