CFPB Proposes Expanded Foreclosure Protections


The foreclosure process can be draining. In order to alleviate some of the stress, the Consumer Financial Protection Bureau has proposed additional steps that would protect home owners and strained borrowers from unfair mortgage lending practices.

This past January, in an effort to address unsatisfactory mortgage servicing practices, the CFPB introduced rules that would eliminate hurdles for homeowners. The rules, which require servicers to keep accurate records, give troubled borrowers access to servicing personnel, credit payments in a timely manner, and correct errors as requested, will be expanded.

The current proposal would make it mandatory for loan servicers to offer certain borrowers foreclosure protections more than once over the life of the loan, additional servicing transfer protections, and protections from wrongful foreclosure sales.

In addition, the expanded proposals would assist with making sure that those who inherit or receive property have the same protections under the updated mortgage servicing rules as the original borrower.

For more details, see the full proposal here.


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