On July 10, 2017, the CFPB issued a finalization of their proposed rule (see 81 FR 32830 ) “to regulate arbitration agreements in contracts for specified consumer financial product [sic] and services.” (see https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/arbitration-agreements/).
Despite rumors to the contrary, this final rule does apply to residential mortgage loans, since new Part 1040 of Title 12 of the Code of Federal Regulations “applies to the offering or provision of [certain] products or services when such offering or provision is a consumer financial product or service as defined by 12 U.S.C. 5481(5)” (12 CFR § 1040.3[a]) “Products and services” covered include “providing an ‘extension of credit’ that is ‘consumer credit’ when performed by a ‘creditor’ as those terms are defined in Regulation B, 12 CFR 1002.2” (Ibid. § 1040.3[a][i]). No exemptions specifically geared towards mortgage loan transactions are extended (see Ibid. § 1040.3[b]). Thus, there is some overlap between this final rule and the anti-arbitration agreement rules set forth under Regulation Z (12 CFR § 1026.36[h]).
We are currently reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Any modifications we make will be announced on our website (http://blog.docutechcorp.com/category/document-updates).