The advisory opinion seeks to provide clarity on violations of the FDCPA and Regulation F for state court foreclosure actions to collect a time-barred mortgage debt. ACA is reviewing the opinion to provide more details for members.
04/26/2023 5:10 P.M.
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The Consumer Financial Protection Bureau has issued an advisory opinion discussing Fair Debt Collection Act Practices requirements related to collections of mortgages that are past the statute of limitations, according to a news release.
“The advisory opinion clarifies that a covered debt collector who brings or threatens to bring a state court foreclosure action to collect a time-barred mortgage debt may violate the Fair Debt Collection Practices Act and its implementing regulation,” according to the CFPB. “A time-barred debt is one whose statute of limitations has expired.”
ACA International is reviewing the details of the advisory opinion (PDF), such as the definition of a debt collector under the FDCPA, judicial and nonjudicial foreclosures, and will provide additional updates for members when we have more information on its impact on the industry.
ACA shared an initial response to the advisory opinion with National Mortgage News, noting that when the CFPB originally proposed Regulation F, it received more than 15,000 comments. This underscores the interest in, and necessity of, a transparent rulemaking process for implementing Regulation F.
“ACA members have already come into compliance with Regulation F. ACA’s Code of Conduct already addresses the need for effective compliance management systems to take into account the complexity and variation of each state’s laws dealing with statute of limitations requirements, as well as the requirements under the FDCPA and Regulation F,” ACA said in a statement to the publication.