Letter to the CFPB re: Reg X Final Rule

Dear Director Vought:

The American Bankers Association (ABA) appreciates President Trump's March 13, 2026, Executive Order, "Promoting Access to Mortgage Credit," which directs the Consumer Financial Protection Bureau (Bureau) to modernize the Dodd-Frank Act regulations that have increased compliance costs and distorted the structure of the mortgage market, contributing to reduced bank participation, competition and consumer choice. Among other things, the Executive Order directs the CFPB, HUD, and the prudential bank regulators to consider changes to mortgage servicing regulations and supervision. In connection with that directive, we understand that the Bureau is considering finalizing certain revisions to Regulation X's mortgage servicing rules proposed in July 2024.

ABA writes to highlight several key themes from our September 9, 2024 comment that we urge the Bureau to consider as it develops a final rule. This letter supplements ABA's 2024 comment letter, which is attached for the Bureau's convenience. As noted in that letter, ABA believes that the sweeping changes and overly expansive borrower protections in the 2024 proposal are unnecessary and counterproductive. Instead, the Bureau should make a few important updates to the rule’s structure to reflect the transformation in servicing that took place in the wake of the mortgage crisis.

When the Bureau promulgated the 2013 Mortgage Servicing Rule, it did so in the shadow of the mortgage crisis. This period was marked by inconsistent servicing practices, dual tracking, and the absence of standardized loss mitigation procedures. The industry that exists today bears little resemblance to that era. In the nearly two decades since, servicers have invested billions of dollars in technology, compliance infrastructure, staffing, and borrower outreach capabilities. These investments have produced a servicing system that is more responsive, more transparent, and more effective at helping distressed borrowers than at any point in history.

Download the comment letter to read the full text.