The Consumer Financial Protection Bureau plans to issue new rules for mortgage servicers this year and the state attorneys general stand ready to enforce them. The bureau will soon require servicers to provide borrowers with billing statements that contain clearer information. New rules could also prevent servicers from charging for force-placed insurance unless the borrower failed to maintain their own insurance.

“It’s a tipping of the hat by Congress to the states to allow them to become bigger players in the regulation of the mortgage industry,” said Richard Andreano, who heads Ballard Spahr’s mortgage banking practice. “When you’re an AG and you see that, you feel emboldened to take that step and become a regulator.”

“As CFPB was coming online, there was talk of them saying now there are more cops on the beat, meaning the other AGs,” said Alan Kaplinsky, who heads the firm’s Consumer Financial Services Group.

At the time the article was written, the 49 state attorneys general were finalizing a $25 billion settlement with the top-five mortgage servicers.

“This settlement is not just about the five banks,” said Michael Waldron, who also heads the firm’s mortgage banking practice. “The dollars are overwhelming and the issues are broad and far reaching. If you walk the floor of any servicer today, it has a very different look and feel than it did 18 months ago.”