4.5.21
On April 5, the Consumer Financial Protection Bureau (CFPB) announced a Notice of Proposed Rulemaking set for both federally guaranteed and private loans intended to help nearly 3 million struggling borrowers experiencing pandemic-related hardship keep their homes as the economy recovers. The new proposal would prohibit servicers from initiating foreclosure proceedings before December 31, 2021, except in certain situations. The CFPB’s proposal seeks to ensure that both servicers and borrowers have the time and tools they need to prevent avoidable foreclosures, including “streamlined loan modification options” that would help borrowers into more affordable payments with less paperwork for both parties.
The bureau is seeking public comment from market participants on its proposals, which are due by May 10. If you have any questions, please contact our Director of MBS Policy, Dallin Merrill.