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.