A mortgage servicing rule has been finalized that addresses concerns that the industry has about communicating with bankrupt borrowers.
Servicing rules from the Consumer Financial Protection Bureau that went into effect in January 2014 provided a number of protections for distressed borrowers.
But a final rule issued in 2016 amended the rules. Among the amendments was a requirement for servicers to provide bankrupt borrowers with periodic statements tailored for bankruptcy.
Source: Mortgage Daily