CFPB Narrows Foreclosure Limits In COVID-19 Servicer Regs

June 28, 2021 | Law 360 The Consumer Financial Protection Bureau on Monday finalized new requirements for mortgage servicers that are aimed at curbing unnecessary foreclosures as pandemic-related relief measures wind down, though the finished package narrows previously proposed restrictions on new foreclosure referrals.

In a final rule, the CFPB adopted temporary additions to its mortgage-servicing regulations that will, among other provisions, provide servicers with more flexibility to offer loan modifications to struggling homeowners and require increased outreach and disclosure to delinquent borrowers.

The rule, which is set to go into effect on Aug. 31, also institutes a more limited version of the "special pre-foreclosure review period" that the CFPB originally proposed to give delinquent borrowers more time to pursue foreclosure alternatives once COVID-19 forbearance programs and foreclosure moratoriums start to end later this year. Read more here.