Foreclosure protection rules expand

Foreclosure protection rules expand.  The Consumer Financial Protection Bureau (CFPB) is proposing numerous new rules for mortgage servicers to ensure no one is wrongfully foreclosed upon.    Here are the proposed new rules:

  • Provide borrowers with alternatives to foreclosure more than once during the life of the loan.
  • Tell borrowers about these protections even if the borrower is current.
  • Expand the rule to allow for protections for surviving family members, transfers after a divorce, legal separation, or when a borrower who is a joint tenant dies.
  • Notify borrowers when the loss mitigation application is complete.
  • Stop dual tracking.  This takes place when a borrower make a loss mitigation application but the foreclosure process continues.

There are so many foreclosure protection rules that keeping track is next to impossible.  The consumer, homeowner, has no chance of knowing all these rules.  How  can you expect the government to police every rule to every mortgage company?

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