6.28.21
On June 28, the Consumer Financial Protection Bureau (CFPB) finalized a new rule that requires loan servicers to establish three main safeguards to protect borrowers against avoidable foreclosure. These safeguards will ensure borrowers have time before foreclosure to explore other options of repayment, including loan modifications and selling their home. According to the CFPB, once the federal foreclosure moratoria lifts, 900,000 borrowers are at risk of having foreclosure start immediately. The new rule, which goes into effect on August 21, 2021, seeks to mitigate this potential risk by helping consumers and servicer ensure sufficient time to pursue loss mitigation options, and will cover all federally backed mortgages as well as those held through private lenders.