A comprehensive fair lending risk assessment based on the Interagency Fair Lending Guidelines is the best method for minimizing the risk of such potential actions. The recently updated Consumer Compliance Rating System makes it very clear that all regulatory agencies expect a robust compliance management system which includes regular self-assessments such as those for fair lending.
But thanks to the financial crisis and resulting exposure of unsavory practices, new rules were put into place by the Dodd-Frank Act. In addition, the CFPB just issued new regulations that further the requirements mortgage servicers must follow. The rules will be effective one year from when they are published in the Federal Register, but the time to begin preparations is now.
The FDCPA generally covers the collection activities of debt collectors collecting on others’ debts and debt buyers (collectively “debt collectors”) but not the collection activities of first-party debt collectors (i.e., creditors collecting on debts owed to them).