CFPB Proposes to Expand Foreclosure Protections

DSNews
Thursday, November 20, 2014

The CFPB has proposed new rules designed to expand foreclosure protections for mortgage borrowers, building on the mortgage servicing rules that went into effect earlier this year. Chief among the new measures would be a requirement that servicers provide additional foreclosure protections to borrowers who have previously worked through the loss mitigation process and recovered. Current rules require servicers to offer borrowers certain protections, including the right to be evaluated under CFPB requirements for foreclosure avoidance options, just once during the life of the mortgage. The proposed rule would require servicers to offer those protections again to borrowers who have brought their loans current at any time since the last loss mitigation application.