The Consumer Financial Protection Bureau (CFPB) Monday proposed a set of rule changes intended to prevent foreclosures and assist consumers as the emergency federal foreclosure protections expire. The proposal includes temporary amendments to Regulation X’s mortgage servicing requirements regarding loss mitigation. Due to the COVID-19 pandemic and ensuing economic crisis, millions of families nationwide have suffered the loss of income and nearly 3 million homeowners are behind on their mortgages.
The CFPB’s proposal recognizes that the expected surge of borrowers exiting forbearance in the fall will put mortgage servicers under strain.
The CFPB’s proposal, if finalized, would: