CFPB Proposes New Mortgage Servicer Rules
On November 20th, the Consumer Financial Protection Bureau (“CFPB”) proposed amendments that would require mortgage servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, to put in place additional servicing transfer protections, and to take steps to protect borrowers from a wrongful foreclosure sale. The proposal would also help ensure that surviving family members and others who inherit or receive property have the same protections under the CFPB’s mortgage servicing rules as the original borrower. Comments should be submitted within 90 days after publication in the Federal Register, which is expected shortly. CFPB Press Release.
CFPB Fair Lending Guidance
On November 18th, the CFPB issued a bulletin to help lenders avoid imposing illegal burdens on consumers receiving disability income who apply for mortgages. The CFPB reminded lenders that requiring unnecessary documentation from consumers who receive Social Security disability income may raise fair lending risk. CFPB Press Release