-
Woman Walks an Hour a Day for 5 Months, Captures What It Does to Her Body - 16 mins ago
-
Analysts are excited about these earnings reports coming next week - 17 mins ago
-
IND vs NZ | Sarfaraz and Pant’s audacious fightback eclipsed by rain and second new ball with Kiwis on command - 18 mins ago
-
Tottenham vs West Ham Prediction: Two sides desperate for a derby win - 19 mins ago
-
Wind warning as Cumbria braces for Storm Ashley - 21 mins ago
-
Klamath River salmon spotted far upstream in Oregon after dam removal - 31 mins ago
-
Philadelphia Mass Shooting Leaves Multiple Injured After 50 Shots Fired - 33 mins ago
-
Sask. Party’s proposed change room policy will put kids at risk: LGBTQ+ advocates - 36 mins ago
-
Alan Wake 2 Expansion, The Lake House, Releases October 22; New Trailer Reveals Gameplay - 39 mins ago
-
Luxury stocks may be a risky China stimulus bet - 40 mins ago
Foreclosures to Change Under New Rule
The Consumer Financial Protection Bureau (CFPB) announced on Wednesday that it wants mortgage lenders to work with homeowners struggling to make their payments instead of foreclosing on their properties.
The new proposal, which is yet to be finalized, would emphasize the streamlining of information—including ensuring that borrowers can access communications in languages they can understand, the federal agency said. They added that other proposals involving better ways to secure credit scores of homeowners in distress were being examined.
“When struggling homeowners can get the help they need without unnecessary obstacles, it is better for borrowers, servicers, and the economy as a whole,” CFPB Director Rohit Chopra said in a statement. “The CFPB’s proposal would reduce avoidable foreclosures and make the mortgage market more resilient during future crises.”
Some of the options that CFPB is suggesting lenders can explore are pausing the monthly payments of borrowers or extending the loan terms to make those outlays less costly. The regulator suggested that during the pandemic, the move to postpone mortgage payments helped both borrowers and lenders.
Recent data suggests that there has been an uptick in foreclosures in recent months even as filings for repossessions and the start of the default process were on the wane.
The CFPB said on Wednesday that lenders can look for ways to avoid foreclosing and only move to that option as a last resort.
“Servicers would generally only be allowed to move ahead with foreclosure after all possibilities for assistance are exhausted or the borrower has stopped communicating with the servicer,” the CFPB said in its statement. “The proposal would also limit the fees a servicer can charge a borrower while the servicer is reviewing possible options to help the borrower.”
The other proposal would ask lenders to reduce what the agency described as the current cumbersome process that asks for all needed information for all potential options available for struggling borrowers.
“This can delay assistance offers, hurting both homeowners and servicers. Under the proposal, servicers would have more flexibility to review borrowers for each option individually, potentially enabling quicker assistance,” the CFPB said.
Other suggested changes include tailored information to borrowers to offer them better insights into what options are available to them to avoid foreclosure.
“This includes changing the notices that borrowers get shortly after missing a payment to include information about who the loan investor is and how to get information about available assistance,” the agency pointed out.
The CFPB said that until the new rules come into effect, current regulations will stay in place.
“The CFPB encourages comments from the public and all interested stakeholders. Comments must be received by September 9, 2024,” the CFPB said in its statement.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Source link