Structured Finance Association Statement on CFPB Reversal on Foreclosure Ban

The Structured Finance Association (SFA) today released the following statement after the Consumer Financial Protection Bureau (CFPB) abandoned plans to ban mortgage servicers from pursuing foreclosures through the end of the year.

“As participants in the securitization market, SFA member companies have remained focused on delivering value and good outcomes to the homeowners they serve throughout this very difficult time,” said Michael Bright, CEO of the Structured Finance Association. “We are pleased the CFPB seems to have struck a pragmatic balance, understanding the needs of struggling homeowners who are actively working with their servicers while also recognizing the need to not let abandoned houses, needlessly drawn-out timelines, or unresponsive borrowers contribute to neighborhood blight and other challenges in the housing market. We also think the final rule eschews more closely to the bureau’s authority under RESPA, reducing a concern that we flagged in our comment letter.”

In May, SFA responded to a request for public comment from the CFPB and raised concerns regarding the bureau’s foreclosure moratorium. A full copy of SFA’s public comment letter is available here.