The Consumer Financial Protection Bureau (CFPB) Tuesday outlined a number principles to guide mortgage services, investors, government housing agencies and policymakers as they develop foreclosure relief solutions that mirror credit union practices. CUNA Chief Advocacy Officer Ryan Donovan pointed out that the guidance generally describes practices already in place at credit unions.
"We appreciate that the CFPB guidance in large part mirrors practices that credit unions have utilized for years. As member-owned financial institutions, credit unions place their members’ needs at the forefront in any transaction,” Donovan said. “Inasmuch as credit unions are already fulfilling the spirit of these principles, we do not believe any additional rulemaking or any change in supervisory approach in this area is necessary for credit unions.”
The CFPB principles call for assistance to consumers facing foreclosure that is accessible, affordable, sustainable and transparent. They span the spectrum of home-retention options such as forbearance, repayment plans and modifications, and home-disposition options such as short sales and deeds-in-lieu.
The principles promote:
The CFPB’s principles do not constitute a rulemaking action, but according to the bureau, are intended to complement ongoing industry discussions.