FHLBC - MPF in Focus

Legal Notes

The MPF^® Program continually reviews mortgage-related industry and legal developments. Below are links to recent developments for your reference. Please address any questions you have about these topics to your compliance team or legal counsel.

The Consumer Financial Protection Bureau (CFPB) proposed amendments to the “Know Before You Owe” mortgage disclosure rule on July 29, 2016. The amendments are intended to formalize guidance in the rule, including the following topics: tolerances for the total of payment, housing assistance lending, cooperatives, and privacy and sharing of information.
On July 29, 2016, the CFPB announced plans to create a feedback mechanism for its consumer complaint database by changing the “dispute” function, allowing complainants to take a short survey on the company’s response to their complaints.
The CFPB published a “Mortgage Servicing Special Edition” of its Supervisory Highlights on June 22, 2016. This edition focuses on issues involving loss mitigation procedures and servicing transfers, and describes recent changes to the mortgage servicing chapter of the CFPB Supervision and Examination Manual.
On August 4, 2016, the CFPB finalized amendments to its mortgage servicing rules, making various important changes and clarifications to the existing rules that will be effective a year to 18 months after publication in the Federal Register. Among other things, the changes include: clarifying the definition of delinquency; broadening the definition of successors in interest and extending protections to those individuals; and providing for periodic statements to borrowers in bankruptcy.

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This newsletter contains forward-looking statements which are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “anticipates,” “believes,” “expects,” “could,” “plans,” “estimates,” “may,” “should,” “will,” or their negatives or other variations on these terms. We caution that, by their nature, forward-looking statements involve risk or uncertainty, that actual results could differ materially from those expressed or implied in these forward-looking statements, and that actual events could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk factors set forth in our periodic filings with the Securities and Exchange Commission, which are available on our website at www.fhlbc.com. We assume no obligation to update any forward-looking statements made in this newsletter.