On May 16, 2025, the CFPB issued an interim final rule that rescinds the final rule “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X.” The final rule was initially implemented to provide relief and prevent foreclosures during the height of the pandemic's economic impact.
The CFPB is rescinding the final rule for two reasons:
The 2021 COVID RESPA Rule established temporary safeguards for mortgage foreclosure and loss mitigation, which have since been rendered obsolete. With the national emergency terminated on April 10, 2023, the Bureau found it necessary to remove pandemic-related provisions without public comment, as they were no longer applicable. Additionally, a proposed rule in July 2024 aims to introduce more streamlined options for servicers to assist borrowers while considering lessons learned from the pandemic.
It is the policy of the Bureau to streamline regulatory requirements to reduce burdens on the American public. The Bureau has determined that, in light of the end of the COVID-19 pandemic, these regulations needlessly complicate Regulation X without commensurate benefits.
Comments on the interim final rule must be received within 30 days from the date of publication in the Federal Register.
The Interim Final Rule can be found here.