This article originally appeared in DS News’ 2019 Black Book. The Real Estate Settlement Procedures Act (Regulation X) was enacted by the Bureau of Consumer of Financial Protection on January 10, 2014, and was designed to protect consumers when they apply for and have mortgage loans. Its enactment set off a wave of apprehension for mortgage servicers and the attorneys who represent them. Would it open a floodgate of consumer litigation? Would its broad terms provide an unchecked avenue for borrowers to contest mortgage servicing decisions they were unhappy with? Perhaps it would stymie servicers’ ability to quickly and efficiently foreclose? With almost four years of analysis and legal decisions interpreting its purpose, impact, and application, Regulation X has proven to be far less of a sea change than initially feared. One of the foremost issues courts grappled within the early days of Regulation X was whether it provided a private right of action for…
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