3170-0016 (Reg X) Supporting Statement 30 day OMB

30-Day Federal Register Version (2019 Renewal)
CONSUMER FINANCIAL PROTECTION BUREAU
INFORMATION COLLECTION REQUEST
SUPPORTING STATEMENT PART A
REAL ESTATE SETTLEMENT PROCEDURES ACT (REGULATION X) 12 CFR 1024
(OMB CONTROL NUMBER: 3170-0016)

OMB TERMS OF CLEARANCE:
When the Office of Management and Budget (OMB) reviewed the information collections
inventoried under OMB Control Number 3170-0016 in 2015 it noted, “Pursuant to the previous terms
of clearance, with publication of the final rule associated with this collection, the previous agreement
between [Department of Housing and Urban Development] and [Consumer Financial Protection
Bureau] to permit regulated industries to use either the [Department of Housing and Urban
Development] Control Number (2502-0265) associated with this information collection, or the
[Consumer Financial Protection Bureau] Control Number, is no longer applicable. Regulated entities
now should only use this [Consumer Financial Protection Bureau] OMB Control Number for the
information collections instruments previously associated with the [Department of Housing and
Urban Development] (2502-0265) forms. CFPB should work with HUD to ensure that HUD's related
collection is discontinued.” Department of Housing and Urban Development (HUD)’s Control
Number for this collection was not renewed and expired on September 30, 2015.
In addition, while not a formal term of clearance, OMB approved certain amendments to Regulation
X under two other OMB Control Numbers (Homeownership Counseling Amendments to the Real
Estate Settlement Procedures Act, OMB No. 3170-0025 on December 11, 2012, and Mortgage
Servicing Amendment, OMB No. 3170-0027 on December 16, 2012). This was done to facilitate
public understanding of multiple overlapping rulemakings associated with those amendments.
However, the pubic and regulated entities were informed to continue OMB No. 3170-0016 for the
information collection requirements contained in Regulation X. Further, OMB’s expectation was that
those Control Numbers would be re-integrated into a single Control Number covering the entire
regulation as soon as it was practical. The Bureau, in consultation with OMB, previously transferred
the information collections and associated burdens previously approved under OMB Nos. 3170-0025
and 3170-0027 into this OMB number. This renewal request reflects the reintegration of the Bureau is
all Regulation X collections into this one OMB Control Number.
ABSTRACT:
The Real Estate Settlement Procedures Act of 1974 (RESPA), 12 U.S.C. 2601 et seq., as amended,
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requires lenders, mortgage brokers, or servicers of certain home loans to provide borrowers with
pertinent and timely disclosures regarding the nature and costs of the real estate settlement process, as
well as servicing, including escrowing.. The Act also prohibits specific practices, such as kickbacks,
and places limitations upon the use of escrow accounts. , among other things the purposes of RESPA
include, in part, providing consumers with more effective advance disclosure of settlement costs and
eliminating certain abusive practices that tend to increase unnecessarily the costs of settlement
services.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) amended RESPA
by, among other things, requiring a single, integrated disclosure for mortgage loan transactions,
mandating new disclosures and protections concerning force-placed hazard insurance, revising
requirements for home buying information booklets, reducing response times to borrower inquiries,
and settling time limits on refunds of escrow account balances at payoff. for consumers with certain
residential mortgages, 12 U.S.C. 2603, 2604, and 2605.
Regulation X, 12 CFR 1024.1-.41, implements RESPA. Regulation X contains information
collections in the form of various disclosure and recordkeeping requirements. The disclosures in this
collection are required by the statute and implementing regulations. Consumers use the disclosures
required by RESPA and Regulation X to inform their choice of settlement service providers, review
the final terms of a settlement, understand who to contact about questions concerning their mortgage
loan, and identify and protect themselves against inaccurate or questionable loan servicing practices.
The information collections discussed in this supporting statement are required in Regulation X, but
to the extent that compliance with requirements in Regulation Z (12 CFR 1026) provides an
exemption from compliance with similar requirements in Regulation X, the information collection
burden is accounted for in OMB Control Number 3170-0015.
JUSTIFICATION
1.

Circumstances Necessitating the Data Collection

The original RESPA implementing regulations were issued by the Department of Housing and Urban
Development (HUD), and previously were published at 24 CFR part 3500. In light of the transfer of
HUD’s authority for RESPA to the Consumer Financial Protection Bureau (Bureau or CFPB), the
Bureau has assumed authority for the information collections in Regulation X and the associated
burdens.
The Dodd-Frank Act amended RESPA by, among other things, mandating new mortgage disclosures
and procedures to improve protections for consumers with certain residential mortgages. Among
other things, the Bureau revised Regulation X to implement the mortgage servicing requirements
provided for in the Dodd-Frank Act’s amendments to RESPA in 12 CFR 1024.30-.41. Section 1463
of the Dodd-Frank Act creates statutory mandates under new subsections (k), (l) and (m) of RESPA
section 6, 12 U.S.C. §2605(k)-(m). Section 1463 of the Dodd-Frank Act also amends certain
consumer protection provisions set forth in section 6(e) through (g) of RESPA, 12 U.S.C. 2605(e)(g). Several of these requirements involve information collections.

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2.

Use of the Information

Regulation X requires that several disclosures be made to a consumer during the process of applying
for and consummating a federally related mortgage loan. Such disclosures may include an estimate of
settlement costs, information relating to the settlement process, a statement of actual settlement costs,
information about escrow accounts and mortgage servicing, and statements concerning certain
business relationships. With regard to the mortgage servicing disclosure mandates, Regulation X
requires that mortgage servicers provide certain disclosures and statements to borrowers as
circumstances may dictate during the course of a loan. These include successor in interest
notifications, mortgage servicing transfer notice, certain written and oral disclosures to certain
delinquent borrowers, responses in writing to certain notices of error and requests for information
submitted by borrowers, force-placed insurance notices, written notices in response to borrower’s
submission of loss mitigation applications, and the outstanding third-party information notice. The
disclosures contained in 12 CFR 1024 (Regulation X) are required by statute, as implemented by the
regulation. Consumers use the disclosures required by RESPA and Regulation X to inform their
choice of settlement service providers, review the final terms of a settlement, understand whom to
contact about questions concerning their mortgage loan, and identify and protect themselves against
inaccurate or questionable loan servicing practices.
Disclosures are not submitted to the federal government. However, Regulation X does require
retention of disclosures provided to consumers in two instances. First, most disclosures provided to
consumers must be retained for five years to aid the Bureau and other regulators in ensuring
compliance with Regulation X. Additionally, servicers are generally required to retain records of
actions taken with response to a borrower’s mortgage loan account until one year after the date the
loan is discharged or servicing of the loan is transferred by the servicer to another servicer.
3.

Use of Information Technology

12 CFR 1024.3 allows that “The disclosures required by this part may be provided in electronic form,
subject to compliance with the consumer consent and other applicable provisions of the Electronic
Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.)”
4.

Efforts to Identify Duplication

The early intervention and loss mitigation procedures may overlap with existing Federal law, as
described in this section. In general, the minimum mortgage servicing rules in Regulation X preempt
State laws (§1204.33(d)); however, some States may have rules applicable to mortgage servicing that
set standards beyond the Bureau’s Rule to which servicers in those States must adhere. Additionally,
the Bureau issued minimum standards so that, to the extent the Bureau’s requirements overlap with
existing Federal law, the Bureau expects servicers would abide by the stricter standard in order to
comply with all requirements.
For borrowers in bankruptcy, the Bureau does not require a servicer to communicate with a borrower
in a manner that would be inconsistent with applicable bankruptcy law or a court order in a
bankruptcy case and, if necessary to comply with such law or court order, permits a servicer to adapt
the early intervention requirements as appropriate (12 CFR 1024.39 comment 39(c)-1).
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For borrowers that have specifically invoked the Fair Debt Collection Practices Act’s (FDCPA’s)
cease communication protections, the Bureau provides servicers a safe harbor from liability under the
FDCPA for compliance with the requirement to provide the written early intervention notice and for
responding to borrower-initiated communications concerning loss mitigation. Similarly, the Bureau
provides a safe harbor from liability under FDCPA section 805(b) for servicers communicating with a
confirmed successor in interest about a mortgage loan secured by property in which the confirmed
successor in interest has an ownership interest, in compliance with Regulation X. 1
Apart from these overlaps, the Bureau is not aware of any other Federal law or regulations that
currently duplicate, overlap, or conflict with the requirements of Regulation X.
5.

Efforts to Minimize Burdens on Small Entities

The Bureau estimates that approximately 90 percent of respondents are small entities. In general,
servicers that service 5,000 mortgage loans or fewer, all of which the servicer or an affiliate owns or
originates; are housing finance agencies, are nonprofit entities that service 5,000 or fewer loans, or
are a qualified lender as defined in 12 CFR 617.7000 are exempt from the disclosures required by
§§1024.38 through 1024.41, which include the early intervention notices and loss mitigation notices
(§1024.30(b)). As such, small servicers are generally exempt from some requirements of Regulation
X, but they must comply with certain disclosure requirements.
6.

Consequences of Less Frequent Collection and Obstacles to Burden Reduction

This information is not submitted to or collected by the Federal government. These disclosures are
required by statute, 12 U.S.C. 2601 et seq., and regulations and are necessary to inform consumers
about important information about each covered transactions. For other required post consummation
notices the burdens on respondents are the minimum necessary to ensure that: (i) borrowers receive
information they need to protect their interest in their property, including information that may help
prevent unnecessary foreclosure; (ii) borrowers receive accurate information about any force-placed
insurance policies servicers may obtain on their property; (iii) borrowers who are in bankruptcy or
who have invoked their cease communication rights under the FDCPA receive necessary information;
and (iv) borrowers know the status of their loss mitigation applications.
The burdens on respondents are also necessary to ensure that servicers have a reasonable basis for
undertaking actions that may harm borrowers and that servicers satisfy their duties to borrowers with
respect to servicing federally related mortgage loans.
7.

Circumstances Requiring Special Information Collection

Sections 1024.10, 1024.14 and 1024.15 all require that covered persons retain documents provided to
borrowers at settlement, and certain other required disclosures for five years after the transaction is
completed. The Bureau and other agencies inspect such documents to ensure compliance with this
regulation, and the extended recordkeeping period is therefore necessary to ensure compliance.
1

See, Safe Harbors From Liability Under the Fair Debt Collection Practices Act for Certain Actions Taken in Compliance
With Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending
Act (Regulation Z), 81 Fed. Reg. 71977 (Oct. 19, 2016)

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Additionally, Regulation X requires that certain information be retained for one year following the
discharge of the loan or the transfer of the loan. This ensures that borrowers and sellers have
information relevant to tracking the servicing of mortgage loans. Other than these provisions, there
are no circumstances requiring special information collection. The collection of information is
conducted in a manner consistent with the guidelines in 5 CFR §1320.5(d)(2).
8.

Consultation Outside the Agency

In accordance with 5 CFR §1320.8(d)(1), the Bureau published a notice in the Federal Register
allowing the public 60 days to comment on the proposed extension (renewal) of this currently
approved collection of information on April 8, 2019, 84 FR 13911. The comment period closed on
June 7, 2019, and as of June 8, 2019 the Bureau had received no comments. Additionally, in
accordance with 5 CFR §1320.5(a)(1)(iv) the Bureau published a notice in the Federal Register
allowing the public 30 days to comment on the submission of this information collection request to
the Office of Management and Budget.
9.

Payments or Gifts to Respondents

Not applicable.
10.

Assurances of Confidentiality

The Bureau does not collect any personally identifiable information under this collection and thus a
Privacy Impact Assessment (PIA) and System of Records Notice (SORN) are not required. There are
no assurances of confidentiality provided to respondents.
11.

Justification for Sensitive Questions

There is no information of a sensitive nature being requested.
12.

Estimated Burden of Information Collection

The Bureau accounts for the paperwork burden for all respondents under Regulation X as described
in the abstract. Respondents, depending on the disclosure, may be the lender, mortgage broker,
mortgage servicer, or other settlement service provider. For purposes of this burden analysis, the
Bureau estimates that there are 9,868 depository institutions and credit unions subject to Regulation
X, and an additional 862 non-depository institutions. Therefore, the total number of respondents for
all provisions is 10,730. Certain disclosures are required only if specified events occur during the life
of the loan (1024.39(b)(1), 1024.41, 1024.41). The Bureau estimates those events occur in loans
made by only a fraction of the total respondents for these information collections. Therefore the
Bureau estimates that each of these information collections has 592 distinct respondents. The number
of respondents for these three information collections is estimated to be 1,776. Therefore, the total
number of respondents for all provisions is estimated to be 12,506.
All respondents will have ongoing production and distribution costs from providing disclosures.
Production costs include deriving the information needed for disclosure, while distribution costs
consist of printing and mailing. The Bureau believes that most large servicers (both depository and
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non-depository) employ vendors for the printing and distribution of their disclosures. Based on talks
with servicers, the Bureau estimates the per-response distribution cost is approximately 30 cents. The
Bureau estimates that, in general, it takes 0.003 hours of internal labor to produce one disclosure. Any
deviation from the .003 hour burden assumption are described as footnotes to the burden table.
The special information booklet (§ 1024.6) is superseded by requirements in Regulation Z, and
therefore accounted for in 3170-0015. This is the case for the Good Faith Estimate (§ 1024.7) and
HUD-1 or HUD-1A forms (§§ 1024.8 and 1024.10(e)) as well, except for in the case of reverse
mortgages. The burden for reverse mortgages associated with these provisions are accounted for in
this Control Number, but all other burden for these collections is accounted for in 3170-0015. The
Homeownership Counseling list required by §1024.20 is also required by Regulation Z, and burden is
calculated in 3170-0015.
The Bureau also requires that certain records be kept for five years after the consummation of
transactions in order to facilitate the Bureau’s inspection and enforcement of these requirements. The
Bureau believes that most, if not all, of these records are now kept electronically, and therefore the
respondents incur only a de minimis burden in retaining these records for an additional period of time.
The existing burden for the information collection is as follows.

Information
Collection
Subpart B
§1024.14(h) 5year
recordkeeping
requirements
for
documentation
related to fees
and referrals 2

Respondents

0

Annual
Number of
Responses

Frequency

0

Total
Annual
Burden
Hours

Burden per
disclosure
(hours)

0

0

0

2

The Bureau believes that records kept pursuant to 1024.14(h) are electronic, and therefore the burden is de minimis. The
Bureau invited comment during the 60-day comment period, and did not receive any responses on this estimate.

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Information
Collection
§1024.15(b)(1)
Providing
Affiliated
Business
Arrangement
Disclosure
Statement 3
§1024.15(d) 5Year
recordkeeping
requirement for
Affiliated
Business
Arrangement
Disclosure
Statement 4
§1024.17(g)
Initial escrow
account
statement

Respondents

Annual
Number of
Responses

Frequency

Burden per
disclosure
(hours)

Total
Annual
Burden
Hours

*

*

*

*

*

0

0

0

0

0

10,730

525

5,641,608

.003

17,139

10,730

3,546

38,052,911

.003

114,158

10,730

6

60,000

.003

180

§1024.17(h)
Short year
escrow account
statement 5
§1024.17(i)
Annual escrow
account
statement
§1024.7 Good
Faith Estimate
for reverse
mortgages

3

As stated below, the Bureau does not have data to estimate the burden of the Affiliated Business Arrangement
Disclosure Statement, and requests public comment on the burden of this disclosure.
4
The Bureau believes that records kept pursuant to 1024.15(d) are electronic, and therefore the burden is de minimis. The
Bureau invited comment during the 60-day comment period, and did not receive any responses on this estimate.
5
Burden for 1024.17(h) intentionally left blank. See discussion below.

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Information
Collection
§1024.8 Use of
HUD-1 or
HUD-1A for
reverse
mortgages
§1024.10(e)
HUD-1 or
HUD-1A
waiver for
reverse
mortgages

Respondents

Annual
Number of
Responses

Frequency

Total
Annual
Burden
Hours

Burden per
disclosure
(hours)

10,730

18

120,000

.003

356

10,730

*

*

*

*

10,730

//////////////////

43,874,519

////////////////

131,833

§1024.32(c)(iv)
Required
notice
Successor in
Interest must
send to servicer
to receive
successor in
interest
notifications

10,730

6

64,380

.017 7

1,100

§1024.32
Servicer
Successor-inInterest
recognition to
consumer 8

10,730

6

64,380

.017

1,100

Subtotal Part B
Subpart C 6

6

All information collections in Subpart C are being transferred from 3170-0027.
Based on previous discussion with servicers and the Bureau’s industry knowledge the Bureau estimates that servicers
receive the required Successor in Interest notice on .1% of all mortgage loans covered by Regulation X (See Supporting
Statement for 3170-0027 approved on 3/13/2018, available at
https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201610-3170-001). Therefore, the Bureau estimated
.1% of all Regulation X covered mortgage loans and found .1% of the total Regulation X burden. By dividing the
estimated number of burden hours for §1024.32(c)(iv) by the total number of responses provides the estimated burden per
response. 1,200 estimated total hours ÷ 64,380 responses = .017 hours per response.
8
These recognitions are triggered by the notice sent to servicer. See note 5.
7

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10,730

735

7,886,550

.003

Total
Annual
Burden
Hours
23,659

592

1,627

963,364

.003

2,900

§1024.35-36
Errorresolution and
requests for
information

10,730

45

481,682

.170 9

81,885

§1024.37
Force-placed
insurance
notice
§1024.41 Loss
mitigation
notices

10,730

86

922,780

.003

2,768

592

8,373

4,956,816

.170 10

842,658

592

44

26,048

.003

78

592
12,506

44
////////////////

15,366,000
59,240,519

.003
///////////////

956,148
1,087,981

Information
Collection
§1024.33
Mortgage
servicing
transfer notice
§1024.39(b)(1)
Early and
Written
intervention for
delinquent
borrowers
notices

§1024.41
Outstanding
third-party
information
notice
Subtotal Part C
Total

Respondents

Frequency

Annual
Number of
Responses

Burden per
disclosure
(hours)

9

In general, the Bureau assumes that the receipt of an error notice or application and subsequent review requires, on
average, 10 minutes per response.
10
See, note 7.

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Total
Information
Annual
Respondents
Frequency
Collection
Burden
Hours
An asterisk (*) indicates that the Bureau does not have data necessary to estimate the information
collection’s burden, and requested comment on this estimate during the 60-day comment period. The
Bureau did not receive additional information to update these burden estimates. Thus, the Bureau is
unable to estimate the burden of these information collections.
Annual
Number of
Responses

Burden per
disclosure
(hours)

Five-year recordkeeping requirements for documentation related to fees and referrals
The Bureau believes that records kept pursuant to 1024.14(h) are electronic, and therefore the burden
is de minimis.
Affiliated Business Arrangement Disclosure Statement & recordkeeping requirement
The Bureau understands that many firms use affiliated business arrangements, but it does not have
data needed to accurately estimate the burden associated with §1024.15(b) and (b)(1) and
§1024.15(d). The Bureau invited comment from covered persons in its Federal Register notice. The
Bureau did not receive any comment on the burden associated with this information collection is
unable to estimate its burden.
Initial escrow account statement
Using 2018 HMDA filings of 2017 mortgage originations, the Bureau identified 7,141,276 mortgage
originations covered by Regulation X as federally related mortgage loans. 11,12 CoreLogic, a company
that aggregates and provides a large amount of mortgage data, estimates that 79% of mortgages have
escrow accounts. 13 The Bureau estimates an annual number of escrow mortgage originations
(7,141,276 x .79) to be 5,641,608. These 5.6 million originations require the initial escrow account
statement. The Bureau believes that, on average, these disclosures take .003 hours to create and send
resulting in 17,139 burden hours. The average covered person will be responsible for providing 525
of these initial escrow account statements (5,641,608 / 10,703).
Short year and annual escrow account statement
Pursuant to §1024.17(i) servicers are generally required to provide annual escrow statements within
30 days of the completion of the escrow account computation year, and §1024.17(i)(4) permits the
servicer provide short-year statements but requires such a statement when servicing is transferred or
the mortgage is paid off. However, when a short-year statement is provided to a borrower, then the
11

See, 12 CFR 1024.2(b) for definition of federally related mortgage loan.
The Bureau recognizes that although the burden estimate is calculated using originations initial escrow statements can
be given at any time. Without data to understand if the estimate is over- or under-counted the Bureau uses the number of
originations to estimate the number of responses.
13
See, https://www.corelogic.com/blog/2017/06/escrow-vs-non-escrow-mortgages-the-trend-is-clear.aspx
12

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escrow account computation year under 1024.17(i) is adjusted to begin on the month selected by the
servicer. The Bureau believes that, in general, the typical consumer will receive, on average, one such
disclosure per twelve-month period over any three year period.
In 2017 there were 48,168,243 households with mortgages. 14 Using CoreLogic’s estimate that 79% of
mortgages have an escrow account, then the Bureau estimates that 38,052,911 households receive
either the short year or annual escrow account statement in a given year (48,168,243 * .79). The
Bureau estimates that, on average, these disclosures take .003 hours to create and mail resulting in
114,158 total burden hours (38,052,911 * .003).
Good Faith Estimate for reverse mortgages
Regulation X generally requires that applicants must be provided a Good Faith Estimate (GFE) no
later than 3 business days after a lender receives an application (§ 1024.7(a)(a)). Much of this burden
is accounted for in OMB Control Number 3170-0015, but the Bureau states the burden of GFE for
reverse mortgages in this Control Number.
The Bureau estimates that there were about 60,000 new reverse mortgage applications in 2017, 15 and
that providing each disclosure requires .003 hours to provide to the borrower. Therefore, the Bureau
estimates that providing this disclosure amounts to 180 burden hours per year industry wide (60,000 x
.003).
Use of HUD-1 or HUD-1A and waivers for reverse mortgages
Regulation X generally requires that the settlement agent provide a settlement statement to the buyer
and seller (§ 1024.8). Additionally, § 1024.10(e) allows for the buyer to waive their right to the
settlement statement.
In general, the settlement agent must provide two settlement statements to each the buyer and seller if
there is a seller in the transaction. Therefore, the Bureau estimates 120,000 responses (60,000 reverse
mortgages x 2 statements) that require .003 hours to prepare. Therefore, the Bureau assumes 356
burden hours per year industry wide (120,000 x .003). The Bureau does not have access to data
describing the number of HUD-1 or HUD-1A waivers submitted by buyers, and requested comment
in its 60-day Federal Register notice. The Bureau did not receive comment.
Successor in interest information sent to servicer to receive notifications and disclosures
Under Regulation X, servicers are generally required: (1) to respond to a written request that indicates
that the person making the request may be a successor in interest by providing that person with a
description of the documents the servicer reasonably requires to confirm the person’s identity and
ownership interest in the property; and (2) to maintain certain policies and procedures with respect to
successors in interest, which are generally intended to facilitate the process of confirming a person’s
14

See,
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_17_1YR_DP04&prodType=table
15
The Bureau estimates that there were about 60,000 reverse mortgage transactions in 2017 per the National Reverse
Mortgage Lenders Association.

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status as a successor in interest and communicating with the person about the status. Servicers are
also required to treat confirmed successors in interest as borrowers for purposes of Regulation X’s
mortgage servicing rules, including with respect to the provision of disclosures servicers are currently
required to provide to borrowers, although additional copies of disclosures are generally not required
where such disclosures are already being provided to another borrower on the loan.
Based on discussions with servicers and its knowledge of the industry, the Bureau estimates that each
year the number of successors in interest covered by the rule is 0.1% of all mortgage loans covered
by Regulation X. The Bureau estimates 64,380 responses, with a total annual burden of 1,100 hours.
Mortgage servicing transfer notice
Regulation X requires that servicers provide borrowers with a notice of whether their loan may be
sold or transferred for reverse mortgages and for closed-end first and subordinated lien mortgages.
The Bureau estimates that each of the 10,730 respondents provides an average of 735 mortgage
transfer notices a year, resulting in approximately 7,886,550 (10,730 * 735) notices industry-wide.
The Bureau estimates that these notices require .003 hours, resulting in 23,659 total burden hours.
Early intervention notice for delinquent borrowers
In general, servicers are required to provide certain written early intervention notices as prescribed in
§1024.39 to certain borrowers by the 45th day of the borrower’s delinquency. These notices generally
must include information on contacting the servicer, information available on loss mitigation options,
if available, and information on the Bureau or HUD list of homeownership counselors.
Respondents have ongoing production and distribution costs from providing this notice. The Bureau
estimates that about 2% of mortgage loans are 30-59 days delinquent. 16 There are approximately 48
million households with mortgages, 17 and applying this delinquency rate generates 963,364 estimated
responses (48,168,243 x .02). The Bureau assumes that many of these disclosures are pre-populated
forms, and thus require only .003 hours of staff time. Therefore, the Bureau estimates about 2,900
burden hours associated with this information collection.
Error-resolution and requests for information
Regulation X’s provision for error resolution and requests for information generally requires written
acknowledgement of receiving a notice of error or an information request, written notification of
correction of error, and oral or written provision of the information requested by the borrower or a
written notification that the information requested is not available to the servicer. These activities are
information collections.
Respondents have ongoing production and distribution costs from providing responses to alleged
errors asserted by the borrower in writing. Based on conversations with large servicers, the Bureau
believes 1% of mortgagees allege an error in a year. Therefore, the Bureau estimates 481,682 errors
16
17

Q4 2018 estimate from National Delinquency Survey from the Mortgage Bankers’ Association.
See, note 18

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(1% x 48,168,243) will be alleged annually. Based on conversations with servicers, the Bureau
believes that addressing the average error allegation will require approximately 10 (0.17 hours)
minutes of staff time. This gives an aggregate industry burden of 81,885 hours.
Force-placed insurance notice
Under Regulation X, servicers are generally required to deliver to the borrower or place in the mail
two related notices: one at least 45 days and the other at least 15 days before charging the borrower
for force-placed insurance. In addition to the two notices, the Bureau requires servicers to provide
borrowers a written notice before charging a borrower for renewing or replacing existing force-placed
insurance on an annual basis.
The Bureau believes that that respondents will have ongoing production and distribution costs from
providing the disclosures. The Bureau estimates the annual number of disclosures for renewing or
replacing existing force-placed insurance as 922,780. The Bureau estimates that large and small
servicers will incur production costs of approximately .003 hours resulting in 2,768 total burden
hours.
Loss mitigation evaluation and notices
Under Regulation X servicers that offer loss mitigation options in the ordinary course of business are
required to follow certain procedures when evaluating loss mitigation applications including
providing a notice telling the borrower if the loss mitigation is incomplete (including the documents
and information that the borrower should submit to make the application complete), approved, or
denied (and, for denials, a more detailed notice of the specific reason for the denial and appeal
rights); (2) a notice of the appeal determination; (3) a copy of the loss mitigation application to
owners of senior or subordinate liens on the property; and, (4) a notice within five days (excluding
Saturdays, Sundays, or legal holidays) after receiving a complete loss mitigation application.
Regulation X also generally requires that servicers are required to comply with loss mitigation
provisions more than once in a life of a loan for borrowers who become current on payment at any
time between the borrower’s prior complete loss mitigation application and a subsequent loss
mitigation application.
According to HUD’s most recent Housing Scorecard (December 2016) nearly 15.9 million loss
mitigation actions occurred between April 2009 and December 2016. The Bureau recognizes that not
all loss mitigation actions are accepted, and to estimate the actual loss mitigation actions, assumes for
every accepted modification one is rejected by the borrower. The annualized number of modifications
of these seven years is 2.3 million. Applying the 50% modification rate, the Bureau estimates there
are approximately 4.6 million loss mitigation actions in a given year. Additionally, the Bureau
estimates that the number of borrowers who apply for multiple loan modifications after bringing a
loan current to be 357,000 annually. Therefore, the total number of loss mitigation actions per year to
be 4,957,000. The Bureau assumes that the average loss mitigation action will require 10 minutes
(0.17 hours) of staff time for an aggregate industry burden of 842,690 hours.
Outstanding third-party information notice
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Regulation X requires that servicers promptly provide a written notice to the borrower if the servicer
lacks required third party information 30 days after receiving the borrower’s complete loss mitigation
application and cannot evaluate the application in accordance with applicable requirements
established by the owner or assignee or the mortgage loan.
Respondents have ongoing production and distribution costs from providing this disclosure. The
Bureau estimates the annual number of notices that would be sent to borrowers under the provision to
be 26,048. The Bureau estimates that servicers will incur internal production costs of approximately
0.003 hours per disclosure, multiplied by 22,270 disclosures, resulting in 78 burden hours.
13.

Estimated Total Annual Cost Burden to Respondents or Recordkeepers
Information Collection

1024.17(g) Reproducing and Mailing
initial escrow account statements 18
1024.17(h) Reproducing and Mailing
Short year escrow account statements 19
1024.17(i) Reproducing and Mailing
annual escrow account statements
1024.7 Good Faith Estimate for reverse
mortgages
1024.8 Use of HUD-1 or HUD-1A for
reverse mortgages
1024.32 Successors in Interest—
Regulation X
1024.33 Mortgage servicing transfer
notice
1024.33 and 1024.39 Early intervention
written notices
1024.35-36 Error-resolution and
requests for information
1024.37 Force-placed insurance notice
1024.41 Loss mitigation evaluations
and notices
1024.41 Third-Party Information
Total Burden Costs:

Per Unit Costs (USD)

Quantity

Total Cost
(USD)

.30

5,641,608

1,692,482

.30

38,052,911

11,415,873

.30

60,000

18,000

.30

120,000

36,000

0.30

64,380

19,314

0.30

7,886,550

2,365,965

0.30

963,364

289,009

0.30

481,682

144,504

0.30

922,780

276,834

0.30

4,957,000

1,487,100

0.30

26,048

7,814

//////////////////////

//////////////////

17,752,895

The Bureau estimates that the printing and mailing costs to be about $0.30 per disclosure.
This results in a total cost of Regulation X requirements to be about $17,752,895.

18
19

This disclosure may be combined with the TRID disclosure and the burden for providing it is taken in 3170-0015.
See discussion regarding 1024.17(h) above.

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14.

Estimated Cost to the Federal Government

Because the Bureau does not collect any information, the cost to the Bureau is negligible.
15.

Program Changes or Adjustments

New Burden
Requested
Current OMB
Inventory
Difference (+/-)
Program Change
Discretionary
New Statute
Violation
Adjustment

Total
Respondents
12,506

Annual
Responses
59,240,519

Burden Hours

Cost Burden
(O & M)
1,087,981
17,752,895

14,989

25,026,566

7,683,928

7,532,623

-2,483

+34,213,953

-6,595,947

+10,220,272

-2,483

+34,213,953

-6,595,947

+10,220,272

The Bureau updated burden allocations to better reflect the burden of the January 10, 2013. Final
Rule and the August 4, 2016 Final Rule which amended Regulation X. The above burden
allocation accounts for all parts of Regulation X. Further, the Integrated Discloser Rule removed a
significant amount of burden previously associated with this rule and reallocated it to Regulation Z
(TILA). Finally the Bureau identified additional information collections in the regulation which
had not been previously accounted for, for which it is now taking burden.
16.

Plans for Tabulation, Statistical Analysis, and Publication

The information collections are third-party disclosures. There is no publication of the information.
17.

Display of Expiration Date

The OMB number will be displayed in the PRA section of the notice of final rulemaking and in the
codified version of the Code of Federal Regulations. Further, the OMB Control Number and
expiration date will be displayed on OMB’s public PRA docket at www.reginfo.gov and on any
official guidance or compliance guides issued with this rule.
18.

Exceptions to the Certification Requirement

The Bureau certifies that this collection of information is consistent with the requirements of 5 CFR
§1320.9, and the related provisions of 5 CFR §1320.8(b)(3) and is not seeking an exemption to these
certification requirements.

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PART B. STATISTICAL METHODS
This collection of information does not involve a survey or otherwise employ statistical methods.

###

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