CFPB suggests postponing seizures until 2022 – NMP

The Consumer Financial Protection Bureau published a new proposed rule change under the Real Estate Settlement Procedures Act, to help prevent an influx of COVID-19-related seizures. The first suggestion is to postpone the seizures until December 31, 2021.

“The nation has endured more than a year of deadly pandemic and punitive economic crisis. We must not lose sight of the dangers that so many consumers still face,” said CFPB acting director Dave Uejio. “Millions of families are at risk of losing their homes to foreclosure in the coming months, even as the country reopens. additional guardrails and tools for repairers as they navigate the months ahead. We will do everything in our power to make sure repairers work with struggling families to find solutions that prevent preventable foreclosures. “

With the proposed postponement of foreclosures, the CFPB believes that borrowers will have sufficient time to explore options for making their payments. For example, the CFPB is considering allowing prior foreclosures if the serving agent has taken certain steps to assess the borrower to mitigate losses or has made efforts to contact a borrower who is not responding. This provision, like the rest of the proposal, would only apply to loans secured by a borrower’s primary residence, a statement said.

In addition, the CFPB suggests offering agents more options to help borrowers. According to the report, the rule proposed by the bureau would provide service agents with the ability to offer certain simplified loan modification options to borrowers facing difficulties related to COVID-19 based on the assessment of an incomplete application. .

The CFPB also stresses the need for communication between service providers and borrowers in order to keep them informed of their options.??

Click here to read the rule proposed by the CFPB providing protections for borrowers affected by COVID-19.

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