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CFPB Proposes Rules to Help Homeowners Avoid Foreclosure

CFPB Proposes Rules to Help Homeowners Avoid Foreclosure

The Consumer Financial Protection Bureau published a proposed rule that would update mortgage servicing rules in Regulation X.

What’s next: Public comments are due by September 9, 2024.

Go deeper: Under the proposed rule,

  • servicers would only be allowed to move ahead with foreclosure after all possibilities for assistance are exhausted or the borrower has stopped communicating with the servicer.
  • fees a servicer could charge a borrower would be limited while the servicer is reviewing possible options to help the borrower.
  • servicers would have to provide more tailored notices to borrowers, so they know what options are available to avoid foreclosure.
  • servicers would have to provide these notices in both English and Spanish to all borrowers, as well as make available oral interpretation services in telephone calls with borrowers.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.