ABA Dodd-Frank Tracker

CFPB Finalizes HMDA Technical Corrections, HELOC Reporting Threshold

2017-08-25T10:15:00.000-04:00

The CFPB issued a final rule making several technical corrections and clarifications to the expanded data collection under Regulation C, which implements the Home Mortgage Disclosure Act, as well as temporarily raising the threshold at which banks are required to report data on home equity lines of credit.

In finalizing the technical corrections, the bureau took note of at least one compliance challenge discussed in ABA’s comment letter and backtracked on a proposal to define multifamily dwellings as including properties in multiple locations. However, the bureau declined to adopt other ABA suggestions that would improve compliance and clarity and finalized the rules largely as proposed, including a provision ABA characterized as “significant and substantive” that would increase the number of institutions subject to HMDA.

Under the rule as originally written, banks originating more than 100 HELOCs would have been generally required to report under HMDA, but the final rule temporarily raises that threshold to 500 HELOCS for calendar years 2018 and 2019, allowing the bureau time to assess whether to make the adjusted threshold permanent. This provision takes effect on Jan. 1, along with compliance for most HMDA expansion provisions.

Read the final rule.
Read ABA’s comment letter.

ABA to CFPB: Process for Overdraft Study, Forms Falls Short

2017-08-23T09:27:00.001-04:00

The CFPB must base its studies of overdrafts on current, rigorous data and adopt any new disclosures through an open and transparent process, ABA told the bureau in a comment letter. Moreover, the bureau must explore why frequent users continue to use overdrafts and how their needs for short-term liquidity would be affected by CFPB regulatory activity. ABA remarked on the importance of allowing customer flexibility for access to different short-term credit products.

People of all walks of life rely upon overdraft and other short-term credit products to meet small dollar account shortfalls. Absent compelling evidence of knowledge gaps or that consumers tend to use the product irrationally — neither of which has been demonstrated during the bureau’s five-year study of overdraft — ABA believes that people should be assumed to be the best judges of what is in their best interests and should remain free to choose.

The bureau’s recent report on customers who frequently overdraw their accounts is based on an outdated sample of data from only a few banks that do not represent the entire industry — particularly community banks and credit unions. The report relies on data provided between January 2011 and June 2012 — before the recent growth in mobile banking and other technologies that help bank customers avoid overdrafts. Moreover, the outdated report neglects key changes since that time in how banks handle and process overdrafts, ABA added.

As for the prototype disclosures also issued by the bureau, ABA noted particular instances in which they are less clear than the existing model form and argued that the existing disclosure “is providing information necessary for bank customers to make informed decisions.” ABA also said that the bureau must use notice-and-comment rulemaking to adopt any new disclosure form for overdrafts.

Read the letter.

CFPB Launches New Web Form for Regulatory Inquiries

2017-08-17T11:09:00.000-04:00

The CFPB announced its launch of a new web form to replace the email address (CFPB_RegInquiries @cfpb.gov) that industry and other stakeholders were using to submit their questions on Bureau regulations. The form can be found on their website at https://reginquiries.consumerfinance.gov.

ABA Supports Changes to CFPB's Prepaid Card Rule

2017-08-16T10:22:00.001-04:00

ABA provided feedback on the CFPB’s proposed changes to its final rule on prepaid products. The proposal includes several revisions to error resolution requirements and limited liability provisions of the prepaid rule, which is set to take effect on April 1, 2018.

ABA generally supported the changes and recommended that the CFPB delete certain cards from its definition of “prepaid accounts,” such as jury duty cards that have no fees, cannot be registered and are not marketed to the general public. ABA also recommended that the bureau delete certain language that would require credit card companies to treat prepaid accounts offered by a related company as credit cards for purposes of merchant disputes and error resolution. Finally, the association noted that the April 2018 compliance deadline may no longer be sufficient, and urged the bureau to extend the deadline to Oct. 1, 2018.

Read the letter.

CFPB Proposes New Disclosure Form for Overdraft Fees

2017-08-07T11:00:00.000-04:00

The CFPB released four new “prototype” overdraft disclosure forms as part of its “Know Before You Owe” campaign. The bureau plans further testing of the forms to determine whether they are more effective than the model opt-in form that banks currently use to explain the overdraft protection options available to consumers.

While the release of the forms was not accompanied by any regulatory amendments, CFPB Director Richard Cordray noted that the bureau is currently in the “pre-rule stage” of an overdraft rulemaking, “with no timing stated for when a rule might be proposed.” The bureau has been studying overdraft since February 2012.

Along with the model disclosure forms, the bureau also published a report on “frequent” overdraft users. The report noted that a low percentage (about 9 percent) of consumers are considered to be frequent overdrafters, incurring more than 10 overdraft or non-sufficient funds fees annually. Unsurprisingly, the study found that frequent overdrafters have lower credit scores, are more likely to be “credit constrained” than infrequent or non-overdrafters and are less likely to have a general purpose credit card. The study also found that 30.5 percent of frequent overdrafters are opted in to overdraft protection services, a rate 2.5 times higher than opt-in rates for other consumers.

ABA believes this opt-in rate demonstrates that frequent users understand and choose to use overdraft services to meet short-term credit needs. The report’s findings underscore the need for consumers to have access to a variety of small-dollar credit options — including overdraft — within the banking industry.

View the disclosure forms.
View the report.

ABA: CFPB’s Debt Collection Study Proposal Subverts PRA Process

2017-08-07T10:28:00.001-04:00

ABA commented on the CFPB’s request for approval under the Paperwork Reduction Act to conduct a survey as part of its study of debt collection disclosures.

While ABA supports the CFPB’s overall goal of gaining a better understanding of how consumers comprehend and respond to debt collection notices, the association opposed the bureau’s request because it declined to provide the materials necessary for meaningful comment. Specifically, ABA noted that the CFPB failed to provide for comment a copy of the financial notice that participants in the study would be asked to read and respond to, as required by the PRA process.

Read the comment letter.

ABA Urges Careful Consideration of Cost, Reg Burden in ATR Review

2017-08-02T10:15:00.000-04:00

ABA urged the CFPB to carefully consider costs and burdens associated with its Ability-to-Repay/Qualified Mortgage rule as it conducts a required assessment of the final rule’s effectiveness.

While ABA generally supported the bureau’s proposed assessment plan, it noted that the review should not only focus on the consumer safety objectives of the ATR rules, but also take into account whether the mortgage markets are operating transparently and efficiently and facilitating access and innovation. The association added that the CFPB’s review should thoroughly examine overall compliance costs imposed by the rule.

A key focal point of the assessment should be an analysis of the temporary category of QM loans for loans eligible to be purchased or guaranteed by Fannie Mae and Freddie Mac, ABA said, noting that the temporary GSE QM “is a critical provision of the law and one that prevented major disruptions in banks’ transition into the new ability-to-repay standards.” Acknowledging that the special GSE provisions must eventually sunset, the association said that the ATR rules “must advance towards a uniform and transparent set of guidelines, criteria and compensating factors that are objective and policy-based, and certainly independent of any institutional market player.”

In addition, ABA recommended several modifications to the rule that would incentivize the expansion of safe lending activities.

Read the letter.

OCC’s Noreika Highlights ‘Unintended Consequences’ of Arbitration Final Rule

2017-08-01T10:15:00.000-04:00

Acting Comptroller of the Currency Keith Noreika expressed concern over the CFPB’s controversial final arbitration rule, noting that it may negatively affect banks’ ability to serve their customers.

The final rule prevents banks from using an effective risk mitigation tool and will eliminate one option consumers have to resolve their concerns without the cost and delay of litigation. Ultimately, the rule may have unintended consequences for banking customers in the form of decreased availability of products and services, increased related costs, fewer options to remedy consumer concerns and delayed resolution of consumer issues.

Noreika added that the OCC has requested additional data from the CFPB as it conducts a thorough review of the arbitration rule, and expressed support for efforts in Congress to overturn the rule through the Congressional Review Act process. The House last week voted to overturn the rule, and a similar measure has been introduced in the Senate by Banking Committee Chairman Mike Crapo (R-Idaho).

ABA has been vocal in its opposition to the arbitration rule, noting that arbitration is a faster, cheaper and more effective way to resolve consumer disputes. In a recent op-ed in The Hill, ABA President and CEO Rob Nichols pointed out that the arbitration rule — which would largely eliminate the use of mandatory arbitration contracts in financial services — amounts to “a regulatory windfall to trial lawyers at consumers’ expense.”

Read Noreika's statement.

Trade Associations Urge CFPB to Extend HMDA Implementation

2017-08-01T10:00:00.000-04:00

Together with four other finance and housing trade associations, ABA wrote to the CFPB to request a delay of the new Home Mortgage Disclosure Act’s mandatory data collection requirements that are set to take effect Jan. 1, 2018.

The groups noted that several proposed changes to the rule — many of which are substantive — have yet to be finalized and that further changes to the reporting requirements will require additional time for banks to test and implement their reporting processes. They also raised concerns about the protection of consumer financial data, as the CFPB has not yet determined which data points will be made publicly available or how it will maintain the integrity of data that is held privately. The associations further recommended that institutions be given the option to incorporate new data requirements into their data collection for 2018 on a voluntary basis.

ABA and the state bankers associations have long sought changes to the final HMDA rule since it was issued in 2015. The letter echoed previous calls from ABA and the state associations for an implementation delay, as well as findings from the recent Treasury report on financial regulation, which raised similar concerns about banks’ ability to comply.

Read ABA's letter.
Read the state bankers association letter.

State Associations, ABA Meet with CFPB on Small Business Lending Data Collection Requirements

2017-08-01T09:45:00.000-04:00

ABA and six state association CEOs met with staff from the CFPB’s research, markets and regulations division to discuss the implementation of section 1071 of the Dodd-Frank Act, which requires financial institutions to report information regarding credit applications by women-owned, minority-owned and small businesses.

Among the issues discussed were the costs and burdens of collecting small business lending data, as well as the potential for misinterpretations or incorrect conclusions that may arise from the collection or public release of such data. In addition, participants raised concerns about customer privacy and financial institution confidentiality related to the release of potential data to the public.

CFPB Cautions Companies on Pay-by-Phone Fees

2017-08-01T09:20:00.003-04:00

The CFPB issued a warning to financial services companies about using misleading consumers on pay-by-phone fees while keeping consumers in the dark about other cheaper payment options. The CFPB called on companies to review their practices to ensure they are following state and federal laws related to pay-by-phone fees, and review consumer complaints about fees.

Read more.

ABA Supports CFPB Proposal to Raise Threshold for HELOC Reporting

2017-07-31T11:05:00.000-04:00

In a comment letter, ABA supported a CFPB proposal to raise the threshold at which banks are required to report data on home equity lines of credit. Currently, banks originating more than 100 HELOCs are generally required to report under the Home Mortgage Disclosure Act. The proposal would temporarily raise that threshold to 500 HELOCS for the calendar years 2018 and 2019, allowing the bureau time to assess whether to make the adjusted threshold permanent.

ABA has advocated for a higher reporting threshold and urged the CFPB to make the increase permanent. The association also opposed a change in language that would trigger reporting if a lender exceeded the threshold in only one of the two preceding years. Additionally, ABA noted that there are still a number of unresolved issues surrounding HMDA, and it called on the bureau to postpone the rule’s effective date to allow more time for those issues to be addressed.

Read the comment letter.

Mnuchin Underscores Tailored Regulatory Approach

2017-07-28T09:40:00.000-04:00

Testifying before the House Financial Services Committee, Treasury Secretary Steven Mnuchin outlined his recommendations for financial reform, including tailoring capital requirements, reducing regulatory overlap, remedying the Volcker Rule and making the Consumer Financial Protection Bureau more accountable.

As an example, during the question-and-answer period Mnuchin suggested that the Dodd-Frank Act’s $50 billion asset threshold for designation as a systemically important financial institution “should be raised substantially, at least to $250 or $300 billion.” He recommended further tailoring the designation process so that regulators have discretion to exempt “simple, un-complex banks” above whatever asset threshold is established.

ABA has long supported a tailored approach to regulating SIFIs based on a broader range of systemic risk indicators, including business model, geographic exposure and interconnectedness. The association supports Rep. Blaine Luetkemeyer’s recently introduced bipartisan Systemic Risk Designation Improvement Act, which would eliminate the arbitrary $50 billion threshold.

Read Mnuchin’s testimony.

House Votes to Overturn CFPB's Arbitration Rule

2017-07-26T09:30:00.000-04:00

House lawmakers voted to overturn the CFPB’s controversial final arbitration rule by a vote of 231 to 190, exercising their authority under the Congressional Review Act to reject new federal regulations within 60 legislative days of publication in the Federal Register.

Leading the effort in the House were House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Rep. Keith Rothfus (R-Pa.), and other members of the House Financial Services Committee. A similar measure has been introduced in the Senate by Banking Committee Chairman Mike Crapo (R-Idaho).

The rule — which was finalized earlier this month — drastically limits the use of mandatory arbitration clauses for financial products and services, which are frequently used by banks of all sizes to manage the unpredictable costs of class action lawsuits and ensure prompt resolution of disputes. ABA previously pointed out that this could impose a significant burden on customers whose claims cannot be resolved through class actions, as it would require them to go to court for minor, non-systemic disputes.

ABA President and CEO Rob Nichols welcomed the House's action, calling it a win for consumers.

In class-action lawsuits, the spoils go overwhelmingly — and sometimes exclusively — to a small group of highly motivated trial lawyers who specialize in filing a large volume of often frivolous litigation. (Overturning the rule) is critical to ensuring the bureau doesn’t provide trial lawyers with a regulatory windfall at consumers’ expense.

Read ABA's statement.

ABA, State Associations Urge House Leaders to Overturn Arbitration Rule

2017-07-25T10:15:00.000-04:00

Together with state bankers associations representing all 50 states and Puerto Rico, ABA wrote to House leaders urging them to support a resolution that would overturn the CFPB’s controversial final arbitration rule.

The resolution — which was introduced last week by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Rep. Keith Rothfus (R-Pa.) and other members of the committee — would exercise Congress’ authority under the Congressional Review Act to overturn new federal regulations within 60 days of publication in the Federal Register. The House is expected to vote on the measure, and a similar resolution has also been introduced in the Senate.

The associations pointed out that the new rule would drastically limit the use of mandatory arbitration agreements for financial services products and services to the detriment of bank customers. For example, without arbitration, consumers will face going to court over minor, non-systemic disputes that cannot be resolved through a class action suit. “If allowed to take effect, the proposed arbitration rule would create a windfall for class-action attorneys, provide little or no relief to harmed consumers, and effectively eliminate an accessible alternative to the often-daunting judicial system,” the associations said.

ABA offered additional comments on the rule in a separate letter to members of Congress. Together with several other financial trade associations, ABA raised concerns about the rulemaking process, noting that the CFPB conducted an incomplete study on arbitration and issued a final rule that undermined the bureau’s own findings, which showed that arbitration is a faster, more cost-effective alternative to class action litigation in resolving consumer disputes.

Read the state association letter.
Read the trade associations’ letter.

This Week Ahead: July 24-28

2017-07-21T11:50:00.000-04:00

Monday

Comments Due FHFA: Proposed Collection; Comment Request (PRA)
Read more.

Thursday

Effective Date CFPB: Policy Guidance on Supervisory and Enforcement Priorities Regarding Early Compliance With the 2016 Amendments to the 2013 Mortgage Rules Under the Real Estate Settlement Procedures Act and the Truth in Lending Act
Read more.

Meeting OCC: Minority Depository Institutions Advisory Committee
Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

Lawmakers Introduce ABA-Backed Legislation to Undo Arbitration Rule

2017-07-21T10:15:00.000-04:00

Members of the House and Senate introduced legislation that would block the CFPB’s controversial arbitration final rule from taking effect. The action is permitted under the Congressional Review Act, which gives Congress the ability to reject new federal regulations within 60 legislative days of publication in the Federal Register.

Leading the effort were Senate Banking Committee Chairman Mike Crapo (R-Idaho), House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Rep. Keith Rothfus (R-Pa.), and other members of the House Financial Services and Senate Banking Committees.

The CFPB’s final arbitration rule prohibits customers from waiving their ability to participate in class action suits and limits drastically the use of mandatory arbitration agreements for financial products and services. With such restrictions in place, arbitration is likely to disappear from financial services contracts, and could result in burdens on customers whose claims cannot be resolved through class actions, instead requiring them to go to court for minor, non-systemic disputes.

ABA and the state bankers associations have been vocal in their opposition to the rule, and ABA President and CEO Rob Nichols applauded lawmakers for taking the next step to block it from taking effect. He noted that in moving forward with the “misguided” rule, the CFPB undermined its own data, which showed that customers fare far better in arbitration than in class action lawsuits.

In reality, the vast majority of disputes get resolved quickly and amicably without the need for arbitration or legal action. If arbitration disappears, the bureau will force consumers to navigate an already overcrowded legal system where the only winners will be trial lawyers. We think our customers deserve better, and we urge lawmakers in both chambers of Congress to overturn this anti-consumer rule as soon as possible.

Read ABA's statement.

Agencies Update Rulemaking Schedules for 2017

2017-07-21T10:00:00.000-04:00

The federal banking agencies updated their rulemaking agendas for the remainder of 2017 and into 2018. The agendas are current as of this past spring and include certain information that is out of date.

According to the schedules, the CFPB expects to issue a final rule on reconciling race and ethnicity data collection under Regulations B and C in October and to issue a notice of proposed rulemaking on third-party debt collection around September and to complete its review of comments on its small-dollar lending proposal this summer. The agenda also indicates that the CFPB is in the "pre-rule activities" stage on overdrafts and business lending data.

The Financial Crimes Enforcement Network expects to issue an advanced notice of proposed rulemaking this month to collect information on businesses and professions involved in real estate closings to determine if they should be subject to requirements under the Bank Secrecy Act. The Federal Reserve, FDIC, and OCC are considering rulemaking to update Community Reinvestment Act regulations. The banking agencies expect to issue a final rule in December to implement the Biggert-Waters Act provisions on private flood insurance.

View the agendas.

Nichols: With Arbitration Rule, CFPB Chooses Trial Lawyers Over Consumers

2017-07-19T11:00:00.000-04:00

In an op-ed for The Hill, ABA President and CEO Rob Nichols argued that the CFPB’s recently finalized arbitration rule was actually anti-consumer — “a regulatory windfall to trial lawyers at consumers’ expense.”

Nichols pointed out that the bureau’s final rule, which requires consumers to have the option of pursuing class action litigation to resolve financial disputes, ignores the CFPB’s own findings on arbitration’s benefits. “Consumers who prevail in arbitration win 166 times what those who prevail in class actions do,” he wrote. “And they get faster relief too — a matter of months, not years.”

Banks and credit unions have long opted for arbitration because it’s the most pragmatic path to the best outcome for all, Nichols added. “It’s faster, cheaper and avoids all the downsides of protracted litigation,” he said. “When customers are in the right, arbitration gets recompense into their pockets as quickly as possible.” Nichols called on Congress to use its powers under the Congressional Review Act to overturn the final rule as quickly as possible.

Read the op-ed.

State Bankers Associations Urge Congress to Take Action to Block Arbitration Rule

2017-07-17T11:00:00.000-04:00

State bankers associations from all 50 states and Puerto Rico wrote to Senate leadership urging lawmakers to use their Congressional Review Act authority to stop the CFPB’s final arbitration rule from taking effect. Under the CRA, Congress has the ability to reject new federal regulations within 60 legislative days of publication in the Federal Register.

The controversial final rule prohibits customers from waiving their ability to participate in class action suits and limits drastically the use of mandatory arbitration agreements for financial products and services. The groups pointed out that the rule “would create a windfall for unscrupulous class-action attorneys, provide little or no relief to harmed consumers, and effectively eliminate an accessible alternative to the often-daunting judicial system.”

Members of Congress earlier this week signaled willingness to move forward to overturn the rule. Senate Banking Committee Chairman Mike Crapo (R-Idaho) indicated he would lead the effort, and Senate Majority Leader Mitch McConnell (R-Ky.) also signaled support for moving the process forward.

Read the letter.

CFPB Proposes Temporary Adjustments for HMDA Reporting Requirements

2017-07-17T10:40:00.000-04:00

The CFPB issued a proposal to raise the threshold at which banks are required to report data on home equity lines of credit. Under the rule, banks originating more than 100 HELOCs are generally required to report under HMDA. The proposal would raise that threshold to 500 HELOCs for the calendar years 2018 and 2019, giving the CFPB time to determine if it will make the adjustment permanent. Comments on the proposal are due by July 31.

Read the proposal.

ABA, CFPB to Host Free Webinar on HMDA Submission Tool

2017-07-17T10:26:00.000-04:00

ABA’s Center for Regulatory Compliance and the CFPB will offer a free webinar on the new Home Mortgage Disclosure Act submission tool on Aug. 8, 2017, at 2:00 pm EDT. The program will provide an overview of the new tool and the data collection process that all financial institutions will use to submit HMDA data beginning Jan. 1, 2018, for data collected in 2017 and after.

CFPB experts will demonstrate the new HMDA platform and discuss other tools designed to help with filing. During the program, participants will see the new web application for uploading data files, learn how they will receive feedback on file format, syntax and validity edits and learn how they can approve the conditions in quality and macro edits. This webcast is designed for compliance, operations and loan processing professionals.

Register now.

ABA, State Associations Call for Extension on HMDA Implementation

2017-07-13T10:00:00.000-04:00

Together with state bankers associations from all 50 states and Puerto Rico, ABA called on the CFPB to delay the implementation of the new Home Mortgage Disclosure Act requirements to provide bankers and third-party service providers more time to comply with the complex rule and to ensure that consumer data is protected. The rule is set to take effect on Jan. 1, 2018. The groups asked the bureau to announce its intention for a delay within the next month.

The associations noted that the recent proposed changes to the rule — many of which were substantive — have added to its complexity, and will require third-party software providers to make additional changes to help banks comply, which would make the Jan. 1 compliance deadline unfeasible. They also pointed out that the CFPB has not conducted appropriate reviews or engaged bankers in discussing solutions.

The recent Treasury report on financial regulation raised similar concerns with banks’ ability to comply with the rule, and whether borrower data would be adequately protected. The associations echoed the department’s call for implementation to be postponed “until borrower privacy is adequately addressed and the industry is better positioned to implement the new requirements.”

Read the letter.

Congressional GOP Pursuing Vote to Overturn Arbitration Rule

2017-07-12T10:15:00.000-04:00

Republicans in the House and Senate are taking steps to overturn CFPB’s final rule prohibiting mandatory arbitration clauses. The action would happen under the Congressional Review Act, which gives Congress the ability to vote to reject new federal regulations within 60 legislative session days of publication in the Federal Register.

While several members indicated their desire to use CRA to overturn the rule, Senate Banking Committee Chairman Mike Crapo (R-Idaho) indicated he would lead the effort. Senate Majority Leader Mitch McConnell (R-Ky.) also signaled his willingness to move forward with the process, and ABA intends to launch a grassroots campaign in support of it.

As Congress weighs broader reforms of the CFPB, Rob Nichols urged lawmakers to “overturn this rulemaking,” which ABA believes hurts rather than helps consumers. The final rule prohibits customers from waiving their ability to participate in class action suits and limits drastically the use of mandatory arbitration agreements for financial products and services. Banks of all sizes often include these clauses in their credit card and deposit account agreements in order to manage the unpredictable costs of class action lawsuits and ensure prompt resolution of disputes.

ABA Calls for Holistic Review of Servicing Rule

2017-07-12T10:00:00.000-04:00

ABA called on the CFPB to take a holistic approach to its review of the 2013 servicing rule to understand its full effects on servicers and consumers. The review — which is required under the Dodd-Frank Act — must be completed by 2019.

In comments on the CFPB’s assessment proposal, ABA urged the bureau to incorporate the 2013 TILA servicing rules and the 2016 servicing amendments into its evaluation. The CFPB should also consider the trickle-down effect of the underwriting requirements of the Ability-to-Repay/Qualified Mortgage rule, which is also under review by the bureau, ABA noted.

The association further recommended that the CFPB closely examine how the rules have improved the response and engagement of delinquent borrowers; the effectiveness of certain disclosures; and how the rules have affected the servicing market. ABA also offered several recommendations for improving the servicing rules, including revisiting the rule’s successors in interest requirements in situations where a borrowers is still living or dies without a will and excluding “posse letters” from a servicer’s information request and error resolution obligations.

In addition, ABA said that the bureau should further explore the issue of “rolling delinquencies,” where borrowers are chronically delinquent but never exceed 120 before making a payment, and reconsider the five-day acknowledgement notice that must be provided after receiving a borrower’s loss mitigation application, noting that the short timeframe presents a challenge for servicers.

Read the letter.