The CFPB issued final rules Thursday intended to clarify andrevise its mortgage servicing guidelines – regulations that some creditunions said will increase the heavy regulatory burden they alreadyface.

The rules – issued as a result of the Dodd-Frank Act andencompassing more than 900 pages –amend regulations the agencyfirst issued in 2013. The rules implement provisions of the RealEstate Settlement Procedures Act (Regulation X) and the Truth inLending Act (Regulation Z).

The rules came on the heels of a GAO study, which found anincreased regulatory burden has not yet dissuaded credit unions from originating andservicing mortgages at least as much as they have in the past.

The rules change provisions that address force-placed insurancenotices, and early intervention and loss mitigation requirements;they also prompt crediting and periodic statement requirements. Therules also affect certain requirements under the Fair DebtCollection Act. In conjunction with the new rules, the CFPBreleased an interpretive rule under the Fair Debt CollectionPractices Act relating to servicers' compliance with certainmortgage servicing rules.

The CFPB said it issued the original rules in 2013 to avoiduncertainty and potential disruption in the national mortgagemarket at a time of economic vulnerability.

The bureau said the majority of the provisions will not causesignificant new compliance burdens and that any new requirements inthe 2013 rules were added “after careful weighing of incrementalcosts and benefits.”

NAFCU immediately disputed that notion, with Director ofRegulatory Affairs Alexander Monterrubio stating there appears tobe several provisions that will have a direct impact on creditunions.

“For example, the projected implementation dates for someportions of this rule are likely to coincide with credit unions'ongoing compliance preparations under [the] CFPB'srevised Home Mortgage Disclosure Act rule,” Monterrubio said.“The HMDA rule changes alone will excessively tax the resources ofmany credit unions. We will continue to advocate for the bureau toreach back and correct the unintended consequences that haveresulted from its rulemakings.”

On the other hand, the National Consumer Law Center praised therules.

“Today, by finalizing revised mortgage servicing rules, the CFPBtook an important step toward improving protections for distressedborrowers,” NCLC Staff Attorney John Rao said. “Many homeownerswill find it easier to save their homes from foreclosure because ofthese new rules.

He said, however, the CFPB failed to address several issues,including problems that homeowners with little English proficiencyface in communicating with their mortgage companies.