Regarding RESPA background, excerpts from recent rule-making is illustrative:
Section 6 of RESPA sets forth a number of protections for borrowers with respect to the servicing of federally related mortgage loans that are currently implemented through Regulation X in current § 1024.21. Section 1463 of the Dodd-Frank Act amended section 6 of RESPA by adding new section 6(k) through (m) to establish new obligations on servicers for federally related mortgage loans with respect to the purchase of force-placed insurance and responses to borrowers’ requests to correct errors, among other things.68 The Bureau observes that section 6(k) also establishes the Bureau’s authority to create obligations the Bureau finds appropriate to carry out the consumer protection purposes of RESPA. Section 1463 of the Dodd-Frank Act also amended existing provisions in section 6 of RESPA with respect to a servicer’s obligation to respond to qualified written requests, a servicer’s administration of an escrow account. Section 1463 also increased the dollar amounts for damages for which a servicer may be liable for violations of section 6 of RESPA. In order to implement the amendments the Dodd-Frank Act added to RESPA in a consistent and clear manner, the Bureau proposed to reorganize Regulation X to combine current Regulation X provisions relating to mortgage servicing in existing § 1024.21 with new mortgage servicing provisions the Bureau proposed to implement Dodd-Frank Act’s amendment of section 6 of RESPA in a newly created subpart C. As discussed above, no comments were received on the proposed reorganization of Regulation X into three subparts and the Bureau is adopting subpart C as proposed as a separate subpart in Regulation X.
Section 1024.21 Mortgage Servicing Transfers
To incorporate mortgage servicing-related provisions within subpart C, the proposed rule would have removed § 1024.21 and would implement the provisions of § 1024.21, subject to proposed changes as discussed below, in proposed §§ 1024.31-1024.34 within subpart C. No comments were received on the removal of § 1024.21 and its incorporation within subpart C. The final rule adopts the removal of § 1024.21 as proposed and implements the provisions of § 1024.21, subject to changes adopted as discussed below, in §§ 1024.31-1024.34 within subpart C.
Section 1024.22 Severability Current
- 1024.22 states that if any particular provision of Regulation X, or its application to any particular person or circumstance is held invalid, the remainder of Regulation X or the application of such provision to any other person or circumstance shall not be affected. The Bureau proposed removing current § 1024.22 because the Bureau believes the section may create unnecessary inconsistency with respect to other Bureau regulations that do not contain corresponding provisions. By removing § 1024.22, the Bureau is not suggesting that the severability of Regulation X is changing or that the Bureau intends the new provisions to be nonseverable. The Bureau intends that the provisions of Regulation X are severable and believes that if any particular provision of Regulation X, or its application to any particular person or circumstance is held invalid, the remainder of Regulation X or the application of such provision to any other provision or circumstance should not be affected. The Bureau’s proposal to remove current § 1024.22 should not be construed to indicate a contrary position. The Bureau did not receive comments on the proposed removal of current § 1024.22, and accordingly, is adopting the removal of current § 1024.22 as proposed.