82_FR_31074 82 FR 30947 - Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z); Correction

82 FR 30947 - Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z); Correction

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 82, Issue 127 (July 5, 2017)

Page Range30947-30949
FR Document2017-13796

The Bureau of Consumer Financial Protection (Bureau) is making several corrections to the final rule it issued in August 2016 (2016 Mortgage Servicing Final Rule) amending certain of the Bureau's mortgage servicing rules. First, the Bureau is correcting two typographical errors relating to the early intervention requirements. Second, the Bureau is making corrections relating to the effective date of official commentary relating to servicers' ability to remove certain language in periodic statement sample forms as an option when, for example, communicating with confirmed successors in interest; sample periodic statement forms that servicers may use for certain consumers in bankruptcy; and official commentary relating to the bankruptcy periodic statement exemptions and modified statements. The corrected effective date for the sample periodic statement forms and commentary will be April 19, 2018. Third, the Bureau is amending the Bureau's authority citation for Regulation Z.

Federal Register, Volume 82 Issue 127 (Wednesday, July 5, 2017)
[Federal Register Volume 82, Number 127 (Wednesday, July 5, 2017)]
[Rules and Regulations]
[Pages 30947-30949]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13796]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Rules 
and Regulations

[[Page 30947]]



BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Parts 1024 and 1026

[Docket No. CFPB-2014-0033]
RIN 3170-AA74


Amendments to the 2013 Mortgage Rules Under the Real Estate 
Settlement Procedures Act (Regulation X) and the Truth in Lending Act 
(Regulation Z); Correction

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; Official Interpretation; Correction.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is making 
several corrections to the final rule it issued in August 2016 (2016 
Mortgage Servicing Final Rule) amending certain of the Bureau's 
mortgage servicing rules. First, the Bureau is correcting two 
typographical errors relating to the early intervention requirements. 
Second, the Bureau is making corrections relating to the effective date 
of official commentary relating to servicers' ability to remove certain 
language in periodic statement sample forms as an option when, for 
example, communicating with confirmed successors in interest; sample 
periodic statement forms that servicers may use for certain consumers 
in bankruptcy; and official commentary relating to the bankruptcy 
periodic statement exemptions and modified statements. The corrected 
effective date for the sample periodic statement forms and commentary 
will be April 19, 2018. Third, the Bureau is amending the Bureau's 
authority citation for Regulation Z.

DATES: This correction is effective October 19, 2017. The effective 
date of amendatory instructions 24.d at 81 FR 72390 and 25.d.ii, vii 
through xvi, xix, xx, and xxi through xxiv at 81 FR 72396 is being 
corrected from October 19, 2017, to April 19, 2018.
    Pursuant to this correction, beginning April 19, 2018: proper use 
of the sample forms in appendices H-30(E) and H-30(F) will comply with 
the form and layout requirements of 12 CFR 1026.41(c) and (d); and 
compliance with comment 41(c)-5 of 12 CFR 1026.41(c) and commentary to 
12 CFR 1026.41(e)(5) and (f) is required.

FOR FURTHER INFORMATION CONTACT: Joel L. Singerman, Counsel; or Laura 
A. Johnson, Senior Counsel; Office of Regulations, at (202) 435-7700.

SUPPLEMENTARY INFORMATION:

I. Background

    On August 4, 2016, the Bureau issued the 2016 Mortgage Servicing 
Final Rule amending certain of the Bureau's mortgage servicing 
rules.\1\ The amendments cover nine major topics and focus primarily on 
clarifying, revising, or amending provisions regarding force-placed 
insurance notices, policies and procedures, early intervention, and 
loss mitigation requirements under Regulation X's servicing provisions; 
and prompt crediting and periodic statement requirements under 
Regulation Z's servicing provisions. The amendments also address proper 
compliance regarding certain servicing requirements when a person is a 
potential or confirmed successor in interest, is a debtor in 
bankruptcy, or sends a cease communication request under the Fair Debt 
Collection Practices Act. The Bureau makes the following corrections to 
the 2016 Mortgage Servicing Final Rule.
---------------------------------------------------------------------------

    \1\ See Amendments to the 2013 Mortgage Rules under the Real 
Estate Settlement Procedures Act (Regulation X) and the Truth in 
Lending Act (Regulation Z), 81 FR 72160 (Oct. 19, 2016).
---------------------------------------------------------------------------

A. Regulation X

Model Clause MS-4(D)--Typographical Error
    Model clause MS-4(D) in the 2016 Mortgage Servicing Final Rule 
contains a typographical error. It provides, in part, ``We have a right 
to invoke foreclosure based on the terms of your mortgage contact.'' 
The Bureau intended the sentence to read, ``We have a right to invoke 
foreclosure based on the terms of your mortgage contract.'' The Bureau 
is correcting this typographical error.
Comment 39(d)(2)-1--Typographical Error
    Regulation X comment 39(d)(2)-1 in the 2016 Mortgage Servicing 
Final Rule discuses a servicer's obligations relating to the written 
early intervention notice, generally required under Sec.  1024.39(b), 
when the borrower has provided a notice under section 805(c) of the 
Fair Debt Collection Practices Act and while any borrower on the 
mortgage loan is a debtor in bankruptcy under title 11 of the U.S. 
Bankruptcy Code. The comment refers to an example in comment 
39(c)(1)(ii)-1.ii but should have referenced comment 39(c)(1)(ii)-2.ii. 
The relevant example is set forth in comment 39(c)(1)(ii)-2.ii. The 
Bureau is correcting this typographical error.

B. Regulation Z

Effective Date Stated in the Amendatory Instruction Relating to Comment 
41(c)-5 in Regulation Z
    The Bureau is correcting the amendatory instruction for comment 
41(c)-5 in Regulation Z. Comment 41(c)-5 relates to servicers' ability 
to remove language from sample periodic statement forms that could 
suggest liability under the mortgage loan agreement if such language is 
not applicable, for example, in the case of a confirmed successor in 
interest who is not liable on the mortgage loan obligation.\2\ Although 
the Bureau specified an effective date for this comment of April 19, 
2018, in the DATES section of the 2016 Mortgage Servicing Rule, it did 
not do so in the relevant amendatory instruction. The Bureau corrects 
this error and applies an effective date of April 19, 2018, to comment 
41(c)-5.
---------------------------------------------------------------------------

    \2\ 81 FR 72300.
---------------------------------------------------------------------------

Effective Date for Sample Periodic Statement Forms and Commentary 
Relating to Bankruptcy Periodic Statements
    The Bureau is correcting the effective date of the (1) sample 
periodic statement forms that servicers may use for consumers in 
bankruptcy to ensure compliance with Regulation Z Sec.  1026.41, and 
(2) commentary to Regulation Z Sec.  1026.41(e) and (f) relating to the 
bankruptcy periodic statement exemption and modified statements. In the 
2016 Mortgage Servicing Final Rule, the Bureau

[[Page 30948]]

finalized rules relating to a servicer's obligation to provide a 
periodic statement to certain consumers in bankruptcy. First, it 
amended Sec.  1026.41(e)(5) and associated commentary generally to 
limit the circumstances in which a servicer is exempt from periodic 
statement requirements with respect to a consumer who is a debtor in 
bankruptcy or has discharged personal liability for a mortgage loan 
through bankruptcy.\3\ Second, it amended Sec.  1026.41(f) and 
associated commentary generally to allow servicers to make various 
clarifications and modifications to the periodic statement requirements 
with respect to consumers in bankruptcy or who have discharged personal 
liability for a mortgage through bankruptcy.\4\ Third, it issued sample 
forms for periodic statements for certain consumers in bankruptcy.\5\
---------------------------------------------------------------------------

    \3\ 81 FR 72310-11.
    \4\ 81 FR 72330.
    \5\ 81 FR 72348.
---------------------------------------------------------------------------

    The Bureau intended all of these amendments relating to the 
bankruptcy periodic statement exemptions and modified statements to 
take effect on April 19, 2018, 18 months after publication in the 
Federal Register.\6\ Although the Bureau specified an 18-month 
implementation period for the regulatory text of Sec.  1026.41(e)(5) 
and (f), it specified only a 12-month implementation period for the 
commentary to those provisions and the bankruptcy periodic statement 
sample forms in appendices H-30(E) and H-30(F). The Bureau corrects 
this error and applies an effective date of April 19, 2018, to the 
commentary to Sec.  1026.41(e)(5) and (f) and the sample forms in 
appendices H-30(E) and H-30(F).
---------------------------------------------------------------------------

    \6\ 81 FR 72349.
---------------------------------------------------------------------------

Authority Citation for Regulation Z To Include 12 U.S.C. 3353
    The Bureau is correcting an omission in the authority citation in 
the 2016 Mortgage Servicing Final Rule. The Bureau did not include 12 
U.S.C. 3353 in the authority citation for amendments to Regulation Z. 
The Bureau is correcting the authority citation to part 1026 to include 
the citation to 12 U.S.C. 3353.

II. Regulatory Requirements

    The Bureau finds that there is good cause to publish these 
corrections without seeking public comment.\7\ Public comment is 
unnecessary because the Bureau is correcting inadvertent, technical 
errors about which there is minimal, if any, basis for substantive 
disagreement. Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\8\ The Bureau has determined that 
these corrections do not impose any new or revise any existing 
recordkeeping, reporting, or disclosure requirements on covered 
entities or members of the public that would be collections of 
information requiring OMB approval under the Paperwork Reduction Act, 
44 U.S.C. 3501, et seq.
---------------------------------------------------------------------------

    \7\ See 5 U.S.C. 553(b)(B).
    \8\ 5 U.S.C. 603(a) and 604(a).
---------------------------------------------------------------------------

List of Subjects

12 CFR Part 1024

    Condominiums, Consumer protection, Housing, Insurance, Mortgages, 
Mortgagees, Mortgage servicing, Reporting and recordkeeping 
requirements.

12 CFR Part 1026

    Advertising, Appraisal, Appraiser, Banking, Banks, Consumer 
protection, Credit, Credit unions, Mortgages, National banks, Reporting 
and recordkeeping requirements, Savings associations, Truth in lending.

Correction

    For the reasons set forth above, the Bureau makes the following 
corrections to the final rule FR Doc. No. 2016-18901, published on 
October 19, 2016, at 81 FR 72160:

0
1. On page 72376, in the third column, under amendatory instruction 16, 
revise added MS-4(D) to read as follows:

Appendix MS-4 to Part 1024--Model Clauses for the Written Early 
Intervention Notice

* * * * *

MS-4(D)--Written Early Intervention Notice for Servicers Subject to 
FDCPA (Sec.  1024.39(d)(2)(iii))

    This is a legally required notice. We are sending this notice to 
you because you are behind on your mortgage payment. We want to 
notify you of possible ways to avoid losing your home. We have a 
right to invoke foreclosure based on the terms of your mortgage 
contract. Please read this letter carefully.


0
2. On page 72382, in the third column, under amendatory instruction 
17.g.vii, revise added paragraph 1 under added heading Paragraph 
39(d)(2) to read as follows:
    1. Borrowers in bankruptcy. To the extent the Fair Debt Collection 
Practices Act (FDCPA) (15 U.S.C. 1692 et seq.) applies to a servicer's 
communications with a borrower and the borrower has provided a 
notification pursuant to FDCPA section 805(c) notifying the servicer 
that the borrower refuses to pay a debt or that the borrower wishes the 
servicer to cease communications, with regard to that mortgage loan, 
Sec.  1024.39(d)(2) exempts a servicer from providing the written 
notice required by Sec.  1024.39(d) while any borrower on the mortgage 
loan is also a debtor in bankruptcy under title 11 of the United States 
Code. For an example, see comment 39(c)(1)(ii)-2.ii.
0
3. Revise amendatory instruction 18 and its regulatory text appearing 
on page 72388, first column, to read as follows:
    ``18. The authority citation for part 1026 is revised to read as 
follows:

    Authority:  12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353, 
5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq.''

0
4. Revise amendatory instruction 24.d appearing on page 72390, third 
column, to read as follows:
    ``d. Effective April 19, 2018, adding H-30(E) and H-30(F).''
0
5. Revise amendatory instruction 25.d.ii appearing on page 72396, first 
column, to read as follows:
    ``ii. Effective April 19, 2018, under 41(c) Form of the periodic 
statement, paragraph 5 is added.''
0
6. Revise amendatory instructions 25.d.vii through xvi and 25.d.xix and 
xx, appearing on page 72396, first column, to read as follows:
    ``vii. Effective April 19, 2018, after the entry for 41(d)(8), the 
heading 41(e) Exemptions is added.''
    ``viii. Effective April 19, 2018, the heading for 41(e)(5) is 
revised, and under that heading paragraphs 1 through 3 are revised, and 
paragraph 4 is added.''
    ``ix. Effective April 19, 2018, the heading 41(e)(5)(i) Exemption 
is added, and paragraph 1 under that heading is added.''
    ``x. Effective April 19, 2018, the heading Paragraph 
41(e)(5)(i)(B)(2) is added, and paragraph 1 under that heading is 
added.''
    ``xi. Effective April 19, 2018, the heading Paragraph 
41(e)(5)(i)(B)(4) is added, and paragraph 1 under that heading is 
added.''
    ``xii. Effective April 19, 2018, the heading 41(e)(5)(ii) 
Reaffirmation or consumer request to receive statement or coupon book 
is added, and paragraph 1 under that heading is added.''
    ``xiii. Effective April 19, 2018, the heading 41(e)(5)(iv) Timing 
of compliance following transition is added.''
    ``xiv. Effective April 19, 2018, the heading 41(e)(5)(iv)(A) 
Triggering events

[[Page 30949]]

for transitioning to modified or unmodified statement or coupon book is 
added, and paragraphs 1 and 2 under that heading are added.''
    ``xv. Effective April 19, 2018, the heading 41(e)(5)(iv)(B) 
Transitional single-billing-cycle exemption is added, and paragraph 1 
under that heading is added.''
    ``xvi. Effective April 19, 2018, the heading 41(e)(5)(iv)(C) Timing 
of first modified or unmodified statement or coupon book after 
transition is added, and paragraphs 1 through 3 under that heading are 
added.''
* * * * *
    ``xix. Effective April 19, 2018, the heading 41(f) Modified 
periodic statements and coupon books for certain consumers in 
bankruptcy is added, and paragraphs 1 through 6 under that heading are 
added.''
    ``xx. Effective April 19, 2018, the heading 41(f)(3) Chapter 12 and 
chapter 13 consumers is added, and paragraphs 1 through 3 under that 
heading are added.''
0
7. Revise amendatory instructions 25.d.xxi through xxiv, appearing on 
page 72396, second column, to read as follows:
    ``xxi. Effective April 19, 2018, the heading 41(f)(3)(ii) Amount 
due is added, and paragraph 1 under that heading is added.''
    ``xxii. Effective April 19, 2018, the heading 41(f)(3)(iii) 
Explanation of amount due is added, and paragraph 1 under that heading 
is added.''
    ``xxiii. Effective April 19, 2018, the heading 41(f)(3)(v) Pre-
petition arrearage is added, and paragraph 1 under that heading is 
added.''
    ``xxiv. Effective April 19, 2018, the heading 41(f)(4) Multiple 
obligors is added, and paragraphs 1 and 2 under that heading are 
added.''

    Dated: June 26, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-13796 Filed 7-3-17; 8:45 am]
 BILLING CODE 4810-AM-P



                                                                                                                                                                                               30947

                                              Rules and Regulations                                                                                          Federal Register
                                                                                                                                                             Vol. 82, No. 127

                                                                                                                                                             Wednesday, July 5, 2017



                                              This section of the FEDERAL REGISTER                       Pursuant to this correction, beginning              Comment 39(d)(2)–1—Typographical
                                              contains regulatory documents having general             April 19, 2018: proper use of the sample              Error
                                              applicability and legal effect, most of which            forms in appendices H–30(E) and
                                              are keyed to and codified in the Code of                                                                         Regulation X comment 39(d)(2)–1 in
                                                                                                       H–30(F) will comply with the form and                 the 2016 Mortgage Servicing Final Rule
                                              Federal Regulations, which is published under
                                                                                                       layout requirements of 12 CFR                         discuses a servicer’s obligations relating
                                              50 titles pursuant to 44 U.S.C. 1510.
                                                                                                       1026.41(c) and (d); and compliance with               to the written early intervention notice,
                                              The Code of Federal Regulations is sold by               comment 41(c)–5 of 12 CFR 1026.41(c)                  generally required under § 1024.39(b),
                                              the Superintendent of Documents.                         and commentary to 12 CFR                              when the borrower has provided a
                                                                                                       1026.41(e)(5) and (f) is required.                    notice under section 805(c) of the Fair
                                                                                                       FOR FURTHER INFORMATION CONTACT:              Joel    Debt Collection Practices Act and while
                                              BUREAU OF CONSUMER FINANCIAL                                                                                   any borrower on the mortgage loan is a
                                              PROTECTION                                               L. Singerman, Counsel; or Laura A.
                                                                                                       Johnson, Senior Counsel; Office of                    debtor in bankruptcy under title 11 of
                                              12 CFR Parts 1024 and 1026                               Regulations, at (202) 435–7700.                       the U.S. Bankruptcy Code. The
                                                                                                                                                             comment refers to an example in
                                              [Docket No. CFPB–2014–0033]                              SUPPLEMENTARY INFORMATION:                            comment 39(c)(1)(ii)–1.ii but should
                                              RIN 3170–AA74                                                                                                  have referenced comment 39(c)(1)(ii)–
                                                                                                       I. Background                                         2.ii. The relevant example is set forth in
                                              Amendments to the 2013 Mortgage                            On August 4, 2016, the Bureau issued                comment 39(c)(1)(ii)–2.ii. The Bureau is
                                              Rules Under the Real Estate                              the 2016 Mortgage Servicing Final Rule                correcting this typographical error.
                                              Settlement Procedures Act (Regulation                    amending certain of the Bureau’s                      B. Regulation Z
                                              X) and the Truth in Lending Act                          mortgage servicing rules.1 The
                                              (Regulation Z); Correction                               amendments cover nine major topics                    Effective Date Stated in the Amendatory
                                                                                                       and focus primarily on clarifying,                    Instruction Relating to Comment
                                              AGENCY:  Bureau of Consumer Financial                                                                          41(c)–5 in Regulation Z
                                              Protection.                                              revising, or amending provisions
                                                                                                       regarding force-placed insurance                         The Bureau is correcting the
                                              ACTION: Final rule; Official                                                                                   amendatory instruction for comment
                                                                                                       notices, policies and procedures, early
                                              Interpretation; Correction.                                                                                    41(c)–5 in Regulation Z. Comment
                                                                                                       intervention, and loss mitigation
                                              SUMMARY:    The Bureau of Consumer                       requirements under Regulation X’s                     41(c)–5 relates to servicers’ ability to
                                              Financial Protection (Bureau) is making                  servicing provisions; and prompt                      remove language from sample periodic
                                              several corrections to the final rule it                 crediting and periodic statement                      statement forms that could suggest
                                                                                                       requirements under Regulation Z’s                     liability under the mortgage loan
                                              issued in August 2016 (2016 Mortgage
                                                                                                       servicing provisions. The amendments                  agreement if such language is not
                                              Servicing Final Rule) amending certain
                                                                                                       also address proper compliance                        applicable, for example, in the case of
                                              of the Bureau’s mortgage servicing rules.
                                                                                                       regarding certain servicing requirements              a confirmed successor in interest who is
                                              First, the Bureau is correcting two
                                                                                                       when a person is a potential or                       not liable on the mortgage loan
                                              typographical errors relating to the early
                                                                                                       confirmed successor in interest, is a                 obligation.2 Although the Bureau
                                              intervention requirements. Second, the
                                                                                                       debtor in bankruptcy, or sends a cease                specified an effective date for this
                                              Bureau is making corrections relating to
                                                                                                       communication request under the Fair                  comment of April 19, 2018, in the DATES
                                              the effective date of official commentary
                                                                                                       Debt Collection Practices Act. The                    section of the 2016 Mortgage Servicing
                                              relating to servicers’ ability to remove
                                                                                                       Bureau makes the following corrections                Rule, it did not do so in the relevant
                                              certain language in periodic statement
                                                                                                       to the 2016 Mortgage Servicing Final                  amendatory instruction. The Bureau
                                              sample forms as an option when, for
                                                                                                       Rule.                                                 corrects this error and applies an
                                              example, communicating with
                                                                                                                                                             effective date of April 19, 2018, to
                                              confirmed successors in interest; sample                 A. Regulation X                                       comment 41(c)–5.
                                              periodic statement forms that servicers
                                              may use for certain consumers in                         Model Clause MS–4(D)—Typographical                    Effective Date for Sample Periodic
                                              bankruptcy; and official commentary                      Error                                                 Statement Forms and Commentary
                                              relating to the bankruptcy periodic                                                                            Relating to Bankruptcy Periodic
                                              statement exemptions and modified                           Model clause MS–4(D) in the 2016                   Statements
                                              statements. The corrected effective date                 Mortgage Servicing Final Rule contains
                                                                                                       a typographical error. It provides, in                  The Bureau is correcting the effective
                                              for the sample periodic statement forms                                                                        date of the (1) sample periodic
                                              and commentary will be April 19, 2018.                   part, ‘‘We have a right to invoke
                                                                                                       foreclosure based on the terms of your                statement forms that servicers may use
                                              Third, the Bureau is amending the                                                                              for consumers in bankruptcy to ensure
                                              Bureau’s authority citation for                          mortgage contact.’’ The Bureau intended
                                                                                                       the sentence to read, ‘‘We have a right               compliance with Regulation Z
                                              Regulation Z.                                                                                                  § 1026.41, and (2) commentary to
                                                                                                       to invoke foreclosure based on the terms
sradovich on DSK3GMQ082PROD with RULES




                                              DATES: This correction is effective                                                                            Regulation Z § 1026.41(e) and (f)
                                                                                                       of your mortgage contract.’’ The Bureau
                                              October 19, 2017. The effective date of                                                                        relating to the bankruptcy periodic
                                                                                                       is correcting this typographical error.
                                              amendatory instructions 24.d at 81 FR                                                                          statement exemption and modified
                                              72390 and 25.d.ii, vii through xvi, xix,                   1 See Amendments to the 2013 Mortgage Rules
                                                                                                                                                             statements. In the 2016 Mortgage
                                              xx, and xxi through xxiv at 81 FR 72396                  under the Real Estate Settlement Procedures Act       Servicing Final Rule, the Bureau
                                              is being corrected from October 19,                      (Regulation X) and the Truth in Lending Act
                                              2017, to April 19, 2018.                                 (Regulation Z), 81 FR 72160 (Oct. 19, 2016).            2 81   FR 72300.



                                         VerDate Sep<11>2014   16:11 Jul 03, 2017   Jkt 241001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\05JYR1.SGM    05JYR1


                                              30948              Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Rules and Regulations

                                              finalized rules relating to a servicer’s                 minimal, if any, basis for substantive                     provided a notification pursuant to
                                              obligation to provide a periodic                         disagreement. Because no notice of                         FDCPA section 805(c) notifying the
                                              statement to certain consumers in                        proposed rulemaking is required, the                       servicer that the borrower refuses to pay
                                              bankruptcy. First, it amended                            Regulatory Flexibility Act does not                        a debt or that the borrower wishes the
                                              § 1026.41(e)(5) and associated                           require an initial or final regulatory                     servicer to cease communications, with
                                              commentary generally to limit the                        flexibility analysis.8 The Bureau has                      regard to that mortgage loan,
                                              circumstances in which a servicer is                     determined that these corrections do not                   § 1024.39(d)(2) exempts a servicer from
                                              exempt from periodic statement                           impose any new or revise any existing                      providing the written notice required by
                                              requirements with respect to a                           recordkeeping, reporting, or disclosure                    § 1024.39(d) while any borrower on the
                                              consumer who is a debtor in bankruptcy                   requirements on covered entities or                        mortgage loan is also a debtor in
                                              or has discharged personal liability for                 members of the public that would be                        bankruptcy under title 11 of the United
                                              a mortgage loan through bankruptcy.3                     collections of information requiring                       States Code. For an example, see
                                              Second, it amended § 1026.41(f) and                      OMB approval under the Paperwork                           comment 39(c)(1)(ii)–2.ii.
                                              associated commentary generally to                       Reduction Act, 44 U.S.C. 3501, et seq.                     ■ 3. Revise amendatory instruction 18
                                              allow servicers to make various                                                                                     and its regulatory text appearing on
                                                                                                       List of Subjects
                                              clarifications and modifications to the                                                                             page 72388, first column, to read as
                                              periodic statement requirements with                     12 CFR Part 1024                                           follows:
                                              respect to consumers in bankruptcy or                      Condominiums, Consumer protection,                         ‘‘18. The authority citation for part
                                              who have discharged personal liability                   Housing, Insurance, Mortgages,                             1026 is revised to read as follows:
                                              for a mortgage through bankruptcy.4                      Mortgagees, Mortgage servicing,                              Authority: 12 U.S.C. 2601, 2603–2605,
                                              Third, it issued sample forms for                        Reporting and recordkeeping                                2607, 2609, 2617, 3353, 5511, 5512, 5532,
                                              periodic statements for certain                          requirements.                                              5581; 15 U.S.C. 1601 et seq.’’
                                              consumers in bankruptcy.5                                                                                           ■  4. Revise amendatory instruction 24.d
                                                 The Bureau intended all of these                      12 CFR Part 1026
                                                                                                                                                                  appearing on page 72390, third column,
                                              amendments relating to the bankruptcy                      Advertising, Appraisal, Appraiser,                       to read as follows:
                                              periodic statement exemptions and                        Banking, Banks, Consumer protection,                          ‘‘d. Effective April 19, 2018, adding
                                              modified statements to take effect on                    Credit, Credit unions, Mortgages,                          H–30(E) and H–30(F).’’
                                              April 19, 2018, 18 months after                          National banks, Reporting and                              ■ 5. Revise amendatory instruction
                                              publication in the Federal Register.6                    recordkeeping requirements, Savings                        25.d.ii appearing on page 72396, first
                                              Although the Bureau specified an 18-                     associations, Truth in lending.                            column, to read as follows:
                                              month implementation period for the                                                                                    ‘‘ii. Effective April 19, 2018, under
                                              regulatory text of § 1026.41(e)(5) and (f),              Correction
                                                                                                                                                                  41(c) Form of the periodic statement,
                                              it specified only a 12-month                                For the reasons set forth above, the                    paragraph 5 is added.’’
                                              implementation period for the                            Bureau makes the following corrections                     ■ 6. Revise amendatory instructions
                                              commentary to those provisions and the                   to the final rule FR Doc. No. 2016–                        25.d.vii through xvi and 25.d.xix and
                                              bankruptcy periodic statement sample                     18901, published on October 19, 2016,                      xx, appearing on page 72396, first
                                              forms in appendices H–30(E) and                          at 81 FR 72160:                                            column, to read as follows:
                                              H–30(F). The Bureau corrects this error                  ■ 1. On page 72376, in the third column,                      ‘‘vii. Effective April 19, 2018, after the
                                              and applies an effective date of April 19,               under amendatory instruction 16, revise                    entry for 41(d)(8), the heading 41(e)
                                              2018, to the commentary to                               added MS–4(D) to read as follows:                          Exemptions is added.’’
                                              § 1026.41(e)(5) and (f) and the sample                                                                                 ‘‘viii. Effective April 19, 2018, the
                                              forms in appendices H–30(E) and                          Appendix MS–4 to Part 1024—Model
                                                                                                                                                                  heading for 41(e)(5) is revised, and
                                              H–30(F).                                                 Clauses for the Written Early
                                                                                                                                                                  under that heading paragraphs 1
                                                                                                       Intervention Notice
                                              Authority Citation for Regulation Z To                                                                              through 3 are revised, and paragraph 4
                                              Include 12 U.S.C. 3353                                   *          *      *       *       *                        is added.’’
                                                                                                       MS–4(D)—Written Early Intervention Notice                     ‘‘ix. Effective April 19, 2018, the
                                                The Bureau is correcting an omission
                                                                                                       for Servicers Subject to FDCPA                             heading 41(e)(5)(i) Exemption is added,
                                              in the authority citation in the 2016
                                                                                                       (§ 1024.39(d)(2)(iii))                                     and paragraph 1 under that heading is
                                              Mortgage Servicing Final Rule. The
                                                                                                          This is a legally required notice. We are               added.’’
                                              Bureau did not include 12 U.S.C. 3353
                                                                                                       sending this notice to you because you are                    ‘‘x. Effective April 19, 2018, the
                                              in the authority citation for amendments
                                                                                                       behind on your mortgage payment. We want                   heading Paragraph 41(e)(5)(i)(B)(2) is
                                              to Regulation Z. The Bureau is
                                                                                                       to notify you of possible ways to avoid losing             added, and paragraph 1 under that
                                              correcting the authority citation to part                your home. We have a right to invoke                       heading is added.’’
                                              1026 to include the citation to 12 U.S.C.                foreclosure based on the terms of your                        ‘‘xi. Effective April 19, 2018, the
                                              3353.                                                    mortgage contract. Please read this letter                 heading Paragraph 41(e)(5)(i)(B)(4) is
                                                                                                       carefully.                                                 added, and paragraph 1 under that
                                              II. Regulatory Requirements
                                                 The Bureau finds that there is good                   ■ 2. On page 72382, in the third column,                   heading is added.’’
                                              cause to publish these corrections                       under amendatory instruction 17.g.vii,                        ‘‘xii. Effective April 19, 2018, the
                                              without seeking public comment.7                         revise added paragraph 1 under added                       heading 41(e)(5)(ii) Reaffirmation or
                                              Public comment is unnecessary because                    heading Paragraph 39(d)(2) to read as                      consumer request to receive statement
                                              the Bureau is correcting inadvertent,                    follows:                                                   or coupon book is added, and paragraph
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                                              technical errors about which there is                      1. Borrowers in bankruptcy. To the                       1 under that heading is added.’’
                                                                                                       extent the Fair Debt Collection Practices                     ‘‘xiii. Effective April 19, 2018, the
                                                3 81 FR 72310–11.                                      Act (FDCPA) (15 U.S.C. 1692 et seq.)                       heading 41(e)(5)(iv) Timing of
                                                4 81 FR 72330.                                         applies to a servicer’s communications                     compliance following transition is
                                                5 81 FR 72348.                                         with a borrower and the borrower has                       added.’’
                                                6 81 FR 72349.                                                                                                       ‘‘xiv. Effective April 19, 2018, the
                                                7 See 5 U.S.C. 553(b)(B).                                   85   U.S.C. 603(a) and 604(a).                        heading 41(e)(5)(iv)(A) Triggering events


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                                                                Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Rules and Regulations                                         30949

                                              for transitioning to modified or                         DEPARTMENT OF TRANSPORTATION                          and locating Docket No. FAA–2016–
                                              unmodified statement or coupon book is                                                                         9071.
                                              added, and paragraphs 1 and 2 under                      Federal Aviation Administration
                                                                                                                                                             Examining the AD Docket
                                              that heading are added.’’
                                                                                                       14 CFR Part 39                                          You may examine the AD docket on
                                                 ‘‘xv. Effective April 19, 2018, the
                                              heading 41(e)(5)(iv)(B) Transitional                                                                           the Internet at http://
                                                                                                       [Docket No. FAA–2016–9071; Directorate
                                              single-billing-cycle exemption is added,                                                                       www.regulations.gov by searching for
                                                                                                       Identifier 2016–NM–019–AD; Amendment
                                                                                                                                                             and locating Docket No. FAA–2016–
                                              and paragraph 1 under that heading is                    39–18942; AD 2017–13–12]
                                                                                                                                                             9071; or in person at the Docket
                                              added.’’
                                                                                                       RIN 2120–AA64                                         Management Facility between 9 a.m.
                                                 ‘‘xvi. Effective April 19, 2018, the                                                                        and 5 p.m., Monday through Friday,
                                              heading 41(e)(5)(iv)(C) Timing of first                  Airworthiness Directives; Airbus                      except Federal holidays. The AD docket
                                              modified or unmodified statement or                      Airplanes                                             contains this AD, the regulatory
                                              coupon book after transition is added,                                                                         evaluation, any comments received, and
                                              and paragraphs 1 through 3 under that                    AGENCY:  Federal Aviation                             other information. The street address for
                                              heading are added.’’                                     Administration (FAA), Department of                   the Docket Office (telephone 800–647–
                                                                                                       Transportation (DOT).                                 5527) is Docket Management Facility,
                                              *      *      *     *    *
                                                                                                       ACTION: Final rule.                                   U.S. Department of Transportation,
                                                 ‘‘xix. Effective April 19, 2018, the                                                                        Docket Operations, M–30, West
                                              heading 41(f) Modified periodic                          SUMMARY:    We are adopting a new
                                                                                                                                                             Building Ground Floor, Room W12–140,
                                              statements and coupon books for                          airworthiness directive (AD) for all
                                                                                                                                                             1200 New Jersey Avenue SE.,
                                              certain consumers in bankruptcy is                       Airbus Model A318 and A319 series
                                                                                                                                                             Washington, DC 20590.
                                              added, and paragraphs 1 through 6                        airplanes; Model A320–211, –212, –214,
                                                                                                       –231, –232, and –233 airplanes; and                   FOR FURTHER INFORMATION CONTACT:
                                              under that heading are added.’’
                                                                                                       Model A321–111, –112, –131, –211,                     Sanjay Ralhan, Aerospace Engineer,
                                                 ‘‘xx. Effective April 19, 2018, the                   –212, –213, –231, and –232 airplanes.                 International Branch, ANM–116,
                                              heading 41(f)(3) Chapter 12 and chapter                  This AD was prompted by an evaluation                 Transport Airplane Directorate, FAA,
                                              13 consumers is added, and paragraphs                    by the design approval holder (DAH),                  1601 Lind Avenue SW., Renton, WA
                                              1 through 3 under that heading are                       which indicates that the main landing                 98057–3356; telephone 425–227–1405;
                                              added.’’                                                 gear (MLG) does not comply with                       fax 425–227–1149.
                                              ■ 7. Revise amendatory instructions                      certification specifications, which could             SUPPLEMENTARY INFORMATION:
                                              25.d.xxi through xxiv, appearing on                      result in a locking failure of the MLG
                                              page 72396, second column, to read as                    side stay. This AD requires modification              Discussion
                                              follows:                                                 or replacement of certain MLG side stay                  We issued a notice of proposed
                                                                                                       assemblies. We are issuing this AD to                 rulemaking (NPRM) to amend 14 CFR
                                                 ‘‘xxi. Effective April 19, 2018, the                  address the unsafe condition on these
                                              heading 41(f)(3)(ii) Amount due is                                                                             part 39 by adding an AD that would
                                                                                                       products.                                             apply to all Airbus Model A318 and
                                              added, and paragraph 1 under that
                                              heading is added.’’                                      DATES:  This AD is effective August 9,                A319 series airplanes; Model A320–211,
                                                                                                       2017.                                                 –212, –214, –231, –232, and –233
                                                 ‘‘xxii. Effective April 19, 2018, the                    The Director of the Federal Register               airplanes; and Model A321–111, –112,
                                              heading 41(f)(3)(iii) Explanation of                     approved the incorporation by reference               –131, –211, –212, –213, –231, and –232
                                              amount due is added, and paragraph 1                     of certain publications listed in this AD             airplanes. The NPRM published in the
                                              under that heading is added.’’                           as of August 9, 2017.                                 Federal Register on September 8, 2016
                                                 ‘‘xxiii. Effective April 19, 2018, the                ADDRESSES: For Airbus service                         (81 FR 62035). The NPRM was
                                              heading 41(f)(3)(v) Pre-petition                         information identified in this final rule,            prompted by an evaluation by the DAH
                                              arrearage is added, and paragraph 1                      contact Airbus, Airworthiness Office—                 which indicates that the MLG does not
                                              under that heading is added.’’                           EIAS, 1 Rond Point Maurice Bellonte,                  comply with certification specifications,
                                                                                                       31707 Blagnac Cedex, France;                          which could result in a locking failure
                                                 ‘‘xxiv. Effective April 19, 2018, the
                                                                                                       telephone: +33 5 61 93 36 96; fax: +33                of the MLG side stay. The NPRM
                                              heading 41(f)(4) Multiple obligors is
                                                                                                       5 61 93 44 51; email: account.airworth-               proposed to require modification or
                                              added, and paragraphs 1 and 2 under                                                                            replacement of certain MLG side stay
                                              that heading are added.’’                                eas@airbus.com; Internet: http://
                                                                                                       www.airbus.com.                                       assemblies. We are issuing this AD to
                                                Dated: June 26, 2017.                                     For Messier-Dowty service                          prevent possible collapse of the MLG
                                              Richard Cordray,                                         information identified in this final rule,            during takeoff and landing.
                                              Director, Bureau of Consumer Financial                   contact Messier-Dowty: Messier                           The European Aviation Safety Agency
                                              Protection.                                              Services Americas, Customer Support                   (EASA), which is the Technical Agent
                                              [FR Doc. 2017–13796 Filed 7–3–17; 8:45 am]               Center, 45360 Severn Way, Sterling, VA                for the Member States of the European
                                              BILLING CODE 4810–AM–P
                                                                                                       20166–8910; telephone: 703–450–8233;                  Union, has issued EASA AD 2016–
                                                                                                       fax: 703–404–1621; Internet: https://                 0018R1, dated September 14, 2016
                                                                                                       techpubs.services/messier-dowty.com.                  (referred to after this as the Mandatory
                                                                                                          You may view this referenced service               Continuing Airworthiness Information,
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                                                                                                       information at the FAA, Transport                     or ‘‘the MCAI’’), to correct an unsafe
                                                                                                       Airplane Directorate, 1601 Lind Avenue                condition for all Airbus Model A318
                                                                                                       SW., Renton, WA. For information on                   and A319 series airplanes; Model A320–
                                                                                                       the availability of this material at the              211, –212, –214, –231, –232, and –233
                                                                                                       FAA, call 425–227–1221. It is also                    airplanes; and Model A321–111, –112,
                                                                                                       available on the Internet at http://                  –131, –211, –212, –213, –231, and –232
                                                                                                       www.regulations.gov by searching for                  airplanes. The MCAI states:


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Document Created: 2017-07-04 02:00:58
Document Modified: 2017-07-04 02:00:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; Official Interpretation; Correction.
DatesThis correction is effective October 19, 2017. The effective date of amendatory instructions 24.d at 81 FR 72390 and 25.d.ii, vii through xvi, xix, xx, and xxi through xxiv at 81 FR 72396 is being corrected from October 19, 2017, to April 19, 2018.
ContactJoel L. Singerman, Counsel; or Laura A. Johnson, Senior Counsel; Office of Regulations, at (202) 435-7700.
FR Citation82 FR 30947 
RIN Number3170-AA74
CFR Citation12 CFR 1024
12 CFR 1026
CFR AssociatedCondominiums; Consumer Protection; Housing; Insurance; Mortgages; Mortgagees; Mortgage Servicing; Reporting and Recordkeeping Requirements; Advertising; Appraisal; Appraiser; Banking; Banks; Credit; Credit Unions; National Banks; Savings Associations and Truth in Lending

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