Consumer Financial Protection Bureau Expands Foreclosure Protections for Borrowers
On August 4, 2016, the Consumer Financial Protection Bureau (CFPB) finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers, including:
- Requiring servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan,
- Expanding consumer protections to surviving family members and other homeowners,
- Providing more information to borrowers in bankruptcy,
- Requiring servicers to notify borrowers when loss mitigation applications are complete,
- Protecting struggling borrowers during servicing transfers,
- Clarifying servicers’ obligations to avoid dual-tracking and prevent wrongful foreclosures, and
- Clarifying when a borrower becomes delinquent.
The CFPB’s press release and link to rules is here.