The CFPB issued a compliance bulletin on April 1st warning mortgage servicers to take all necessary steps to prevent a wave of foreclosures this fall. The CFPB advised that beginning with the expiration of the federal foreclosure moratoriums at the end of June 2021, mortgage servicers will need ramped-up capacity to reach out and respond to the large number of homeowners requiring loss mitigation assistance. The CFPB will monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation. The Bureau is focused on preventing avoidable foreclosures.
“Servicers who put struggling families first have nothing to fear from our oversight, but we will hold accountable those who cause harm to homeowners and families,” said CFPB Acting Director Dave Uejio. Read the full compliance bulletin and policy guidance here.