Business Law
Business Law News 2015, Issue 3
Content
- Bln Editorial Board: Message from the Issue Editors
- Business Law News Editoral Team
- Executive Committee: Message from the Chair
- Executive Committee of the Business Law Section 2014-2015
- MCLE Article: the Rules of Professional Conduct Do Apply to In-House Lawyers
- Orap Liens and Bankruptcy Law: Protecting the Interests of Judgment Creditors With Secret Liens
- Regulate or Be Regulated: the Impact of Landmark Groundwater Legislation on Local Agencies
- Sharing Economy: An Interview with California Insurance Commissioner Dave Jones
- Standing Committee Officers of the Business Law Section 2014-2015
- Table of Contents
- Test Your Knowledge: Recent Developments in Insolvency Law
- The Consumer Financial Protection Bureau's Enforcement Activities: 2014 Year In Review
- Stay No More: the Cfpb's Proposed Amendments To Servicing Rules Undermine the Clarity of the Automatic Stay
Stay No More: The CFPB’s Proposed Amendments To Servicing Rules Undermine The Clarity Of The Automatic Stay
Brian Burke Farrell
Brian Farrell is an associate at Sheppard, Mullin, Richter & Hampton, LLP. He is a business litigation attorney specializing in consumer finance, creditors’ rights, business torts, and appellate practice. He can be reached at bfarrell@smrh.com.
The Consumer Financial Protection Bureau (CFPB) has proposed certain amendments to the mortgage servicing regulations issued in 2013. Two of these amendments will eliminate blanket exemptions currently applicable to certain servicer-initiated communications while the borrower is a debtor in bankruptcy. The proposed amendments will narrow the scope of the current exemptions and will require servicers to, in certain circumstances, continue to communicate with borrowers who have filed for bankruptcy protection. These amendments, which are expected to result in final rules issued in March 2016, undermine the certainty of the automatic stay and will require servicers to more carefully analyze and monitor bankruptcy proceedings, determine if debtors are eligible for loss mitigation options, and send periodic statements to debtors who intend to retain the property securing the mortgage loan.