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34 On August 4, the CFPB announced expanded consumer foreclosure protections. Cast as "rule clarifications," the updated final rules do contain a large number of new, additional requirements that are already being discussed and digested by the servicing industry. Much of this discussion has, justifiably, focused on expanded protections, such as: new life-of-loan loss mitigation (loss- mitigation protections now extended to each consumer delinquency over the life of a loan); communication and loan-handling requirements during servicing transfers; and broadened definitions on successors in interest and how to handle relations with those individuals. THE FINE PRINT e updated rules, however, bury the lead with a new slant on an already-existing protection-enhanced servicer liability for potential dual-track violations. In these updated rules, the CFPB makes explicitly clear that a mortgage servicer is legally responsible for the conduct (or inaction) of its hired counsel for any dual tracking violations during a foreclosure action. e Mortgage Servicing Executive Summary, released on August 4, states, "e servicer must not move for a foreclosure judgment, move for an order of sale, or conduct a foreclosure sale, even where a third party conducts the sale proceedings, unless one of the specified circumstances is met (the borrower's loss mitigation application is properly denied, withdrawn, or the borrower fails to perform on a loss mitigation agreement). Absent one of the specified circumstances, conduct of the sale violates Regulation X. Additionally, the servicer must instruct foreclosure counsel not to make any further dispositive motion, to avoid a ruling or order on a pending dispositive motion, or to prevent conduct of a foreclosure sale, unless one of the specified circumstances is met. Counsel's failure to follow these instructions does not relieve a servicer of its obligations not to move for foreclosure judgment or order of sale, or conduct a foreclosure sale." e onus this puts on mortgage servicers and their law firms cannot be understated. Already, the industry had seen a recognizable rise in both class-action and loan-level litigation since the January 2014 RESPA changes. Consumers and their counsel have already commenced or threatened countless new lawsuits against servicers for alleged I N D U S T R Y I N S I G H T / J A S O N A . W H I T A C R E UPDATED CFPB FINAL RULES INCREASE SERVICER LIABILITY A Call to Action for the Default Servicing Industry