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26 C raig Nazzaro is of counsel in Baker Donelson's Atlanta office. He has supported clients in all facets of the mortgage industry for over 14 years, including brokers, bankers, non-bank servicers, investors, depository institutions and third-party service providers. He regularly counsels mortgage clients on issues of compliance, data privacy, and regulatory violations arising out of state and federal law. Prior to joining Baker Donelson, Nazzaro was a VP and Assistant General Counsel with JPMorgan Chase providing support to each of their consumer lines of business. What's in store for the future of the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA)? ese regulations are in a state of flux. For example, with the FDCPA you have the CFPB in the middle of the rule promulgation process for new regulations to govern not only third party collectors, but first party collectors as well. e Supreme Court has also just recently granted cert in the Santander case, which will address if the FDCPA is applicable to those that buy defaulted debt and then attempt to collect said debt. So with the CFPB on the brink of changing the regulation of debt collection and the Supreme Court reviewing aspects of the current regulation, I think those that are dealing with the collection of mortgage debt have some regulatory instability ahead. en, turning to the TCPA, you have the FCC order issued in 2015 expanding the defini- tion of an auto dialer, creating an overly broad standard for revocation of consent and failing to limit liability in the event of a reassigned phone number. Adding more uncertainty to the TCPA, you have the ACA case in front of the U.S. Court of Appeals in the D.C. Circuit challenging the very issues the 2015 FCC order created, and to top it off we have the recent confirmation of Commissioner Ajit Varadaraj Pai as Chairman of the FCC. If you look at the 2015 FCC order, Commissioner Pai authored the dissenting statement. So I believe we will see some change if not a complete overhaul of the TCPA in the near future. What is the liability for the servicer and the lender in the event of a data breach? at would depend on where the breach occurred and what the severity of the breach was, also, what policies, procedures, and controls were in place prior to the breach. When you're assessing the risks associated with data privacy and cyber security as well as the cost associated with implementing the best practices to control against those risks, you also have to be sure to account for reputational, COUNSEL'S CORNER Regulatory Compliance in Today's Technology-Inundated Mortgage Industry "I view the regulation of the financial services industry as a pendulum. After the financial crisis subsided, the pendulum swung way too far to one side and we wound up with the over regulation and aggressive approach utilized by the CFPB that we deal with today." Craig Nazzaro, Counsel, Baker Donelson

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