COOP - CFPB proposes rule changes to prevent avoidable foreclosures

The Consumer Financial Protection Bureau proposes changing some rules in order to help prevent avoidable foreclosures as emergency federal foreclosure protections, that were implemented in response to the COVID-19 pandemic, expire.The proposal seeks to ensure that mortgage servicer and borrowers have "the tools and time they need to work together to prevent avoidable foreclosures, recognizing that the expected surge of borrowers exiting forbearance in the fall will put mortgage servicers under strain," the bureau said in a statement.The proposed changes include:? Giving borrowers more time — the proposed rule would provide a special pre-foreclosure review period that would generally prohibit services from starting foreclosure until after Dec. 31, 2021. The CFPB is seeking public input on that date and as to whether there are more limited ways to achieve the same purpose, such as allowing earlier foreclosure if the servicer has taken certain steps to evaluate the borrower for loss

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CFPB proposes rule changes to prevent avoidable foreclosures