The CFPB last week upped the compliance ante for mortgage servicers by finalizing a number of amendments to its 2013 mortgage servicing regulation that will expand consumer protections while requiring more of servicers. The protections address, among other issues, successors in interest and borrowers in bankruptcy. Under the final rule, servicers will be required to provide certain borrowers with foreclosure protections more than once over the life of the loan. As per the CFPB’s existing rules, a mortgage servicer is required to give borrowers certain foreclosure protections, including the right to be evaluated under the bureau’s requirements for options to avoid foreclosure, only once during the life of the loan. The final rule, however, will require that servicers give those ...
As policymakers in Washington, DC, face the expiration of the Treasury Department’s Home Affordable Modification Program at year-end, the CFPB last week released a collection of what it characterized as “guiding principles” on the future of foreclosure prevention. “We aim to help consumers avoid foreclosures, which upset their personal and financial lives,” said CFPB Director Richard Cordray. “The modification program was put in place to provide alternatives to foreclosure. Our principles will serve as helpful guardrails for servicers, investors and regulators to consider as we continue to protect consumers who are struggling to pay their mortgages.” In summary, the principles emphasize, among other things, accessibility: “Consumers should easily be able to obtain and use information about loss mitigation options, and ...
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