No, you are not required to send autopay or prepaid borrowers with periodic billing statements. However, you are required to send notices or other means of confirming ACH payments from another institution, as mentioned below.

Because your institution qualifies as a small servicer, you are exempt from Regulation Z’s mortgage periodic statement requirements. Consequently, we believe it would be permissible to discontinue sending monthly bills to autopay or ACH customers, as well as to customers who already have made a prepayment for a particular billing period. Nonetheless, we do recommend reviewing your account agreements to ensure that they do not obligate you to send billing statements to customers who have signed up for autopay, ACH payments, or who have prepaid a bill.

Having said that, you still are required to comply with Regulation E’s notice requirements for preauthorized electronic fund transfers – by providing a confirmation notice after the transfer, a negative notice of transfers that did not occur, or a “readily-available telephone line” to confirm that transfers occurred or did not occur.

For resources related to our guidance, please see:

• Regulation E, 12 CFR 1005.10(a) (“(1) Notice by financial institution. — When a person initiates preauthorized electronic fund transfers to a consumer's account at least once every 60 days, the account-holding financial institution shall provide notice to the consumer by: (i) Positive notice. — Providing oral or written notice of the transfer within two business days after the transfer occurs; or (ii) Negative notice. — Providing oral or written notice, within two business days after the date on which the transfer was scheduled to occur, that the transfer did not occur; or (iii) Readily-available telephone line. — Providing a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclosing the telephone number on the initial disclosure of account terms and on each periodic statement.”)