The Consumer Financial Protection Bureau (CFPB) today proposed a set of rule changes intended to help prevent avoidable foreclosures as the emergency federal foreclosure protections expire.
The Consumer Financial Protection Bureau (CFPB) today warned mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall. Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall. Servicers should dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation. The CFPB will consider a servicer’s overall effectiveness in helping consumers when using its discretion to address compliance issues that arise.
On December 18, 2020, the Consumer Financial Protection Bureau issued a consent order against Seterus, Inc. and Kyanite Services, Inc., as Seterus’s successor in interest, based on the Bureau’s finding that Seterus violated the Consumer Financial Protection Act of 2010 and Regulation X.
Consumer Financial Protection Bureau Director Kathleen L. Kraninger makes statement after the U.S. Department of Housing and Urban Development and the Federal Housing Finance Agency announced a moratorium on foreclosures and evictions.
Bureau Also Seeks Comment on Separate Proposed Rule Modifying Timing Requirements for Bankruptcy Periodic Statements
The Consumer Financial Protection Bureau (CFPB) today finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The updated rule requires servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, clarifies borrower protections when the servicing of a loan is transferred, and provides important loan information to borrowers in bankruptcy.
The Consumer Financial Protection Bureau (CFPB) today outlined consumer protection principles to guide mortgage servicers, investors, government housing agencies, and policymakers as they develop new foreclosure relief solutions. The Bureau’s action comes as the Department of Treasury’s Home Affordable Modification Program, a foreclosure relief program put in place in response to the financial crisis, is nearing its expiration date.
CFPB Releases Special Edition of Supervision Highlights and Updates Mortgage Servicing Exam Procedures
WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) proposed additional measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The proposal would require servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, to put in place additional servicing transfer protections, and to take steps to protect borrowers from a wrongful foreclosure sale. The proposal would also help ensure that surviving family members and others who inherit or receive property have the same protections under the CFPB’s mortgage servicing rules as the original borrower.
Along with other cases from federal and state partners, today we charged that mortgage rescue scammers have taken $25 million in illegal advance fees from consumers. It serves as a reminder of how important it is to watch out for scam artists trying to take advantage of people who need help avoiding foreclosure. Read more to learn how to protect yourself from these scams.
Today, the Consumer Financial Protection Bureau (CFPB), Department of Justice (DOJ), Department of Housing and Urban Development (HUD), and attorneys general in 49 states and the District of Columbia filed a proposed federal court order requiring SunTrust Mortgage, Inc. to provide $500 million in loss-mitigation relief to underwater borrowers. The order also requires SunTrust to pay $40 million to approximately 48,000 consumers who lost their homes to foreclosure and $10 million to the federal government. The order addresses systemic mortgage servicing misconduct, including robo-signing and illegal foreclosure practices. SunTrust must also pay a $418 million penalty, in a parallel mortgage lending filing announced by DOJ today.
Crossposted from USAToday.com. This opinion editorial originally ran on January 7, 2014 online and in the print edition on January 8, 2014. Let me tell you a common story I hear. It starts with a woman in 2005 or 2006 who took out a mortgage to buy her first home. After two years, her teaser interest […]
Over time, we have come to a fuller understanding of how rampant underwriting deficiencies eventually brought about the credit crunch, the financial meltdown, and the deep recession that have so dramatically affected this country for five years now and counting.
Because of what you do every day – fighting to improve the lives of the nation’s most vulnerable and underserved consumers – you are my personal heroes and you set an important example for everyone at the Consumer Financial Protection Bureau.
Chairman Johnson, Ranking Member Crapo, and members of the Committee: I am honored to be here once again as the nominee to serve as the Director of the Consumer Financial Protection Bureau.
When handing over the processing of loans, mortgage servicers should not lose paperwork, lose track of a homeowner’s loss mitigation plans, or hinder a consumer’s chances of saving their home from unnecessary foreclosure.
Today, the Consumer Bureau is announcing new mortgage servicing rules that will help all borrowers, especially those facing foreclosure. Our rules will provide a fairer and more effective process for troubled borrowers who face the potential loss of their homes.
The CFPB’s mortgage servicing rules ensure that borrowers in trouble get a fair process to avoid foreclosure. Borrowers shouldn’t have to worry about mortgage servicers cutting corners or losing applications for relief.
“These proposed rules would offer consumers basic protections and put the Ôservice’ back into mortgage servicing. The goal is to prevent mortgage servicers from giving their customers unwelcome surprises and runarounds.”
But the major failures in this industry demonstrate that all servicers need to meet basic standards of good customer service. So today we are announcing that the Consumer Financial Protection Bureau is proposing important reforms to the mortgage servicing market.
The foreclosure crisis had a devastating impact on median wealth in this community in particular. And now you and everyone else are dealing with a dried-up credit market that is making it especially difficult to secure a home loan.
First and foremost are the financial concerns of military homeowners.
We want to make sure that mortgage servicers comply with the laws that prohibit unfair, deceptive, or abusive practices when it comes to a servicemember’s Permanent Change of Station orders, known as “PCS orders.”
We’re pleased to have the support of the prudential regulators who signed the guidance we’re announcing today – the Federal Reserve Board, the FDIC, the NCUA and the OCC – as well as that of the FHFA, the Department of Defense, the VA, USDA, Treasury, Justice, and HUD.
And we have certain goals in common: a strong and vibrant financial sector; a highly competitive economy that works for Americans in both the short run and the long run; the ability to earn and maintain the public’s trust and confidence; and fidelity to the highest standards of business ethics, the kind that the Chamber was founded upon exactly a century ago.
