Consumer Financial Protection Bureau Outlines Guiding Principles For The Future Of Foreclosure Prevention


Consumer Financial Protection Bureau Outlines Guiding Principles For The Future Of Foreclosure Prevention

CFPB Outlines Consumer Protections as Government Foreclosure Relief Program Is Set to Expire

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today outlined consumer protection principles to guide mortgage servicers, investors, government housing agencies, and policymakers as they develop new foreclosure relief solutions. The Bureau’s action comes as the Department of Treasury’s Home Affordable Modification Program, a foreclosure relief program put in place in response to the financial crisis, is nearing its expiration date. The CFPB’s proposed principles are meant to inform the discussion of potential options to help prevent avoidable foreclosures.

“We aim to help consumers avoid foreclosures, which upset their personal and financial lives,” said CFPB Director Richard Cordray. “The modification program was put in place to provide alternatives to foreclosure. Our principles will serve as helpful guardrails for servicers, investors, and regulators to consider as we continue to protect consumers who are struggling to pay their mortgages.”

Mortgage servicers collect payments from the mortgage borrower and forward those payments to the owner of the loan, the investor. They handle customer service, collections, loan modifications, and foreclosures. Avoiding foreclosure is often in the best interests of both the investor and the consumer. Servicers may provide consumers with ways to prevent foreclosure, also known as “loss mitigation” options, such as forbearance, repayment plans, loan modification, and short sales.

During the financial crisis, the Department of Treasury created the temporary Home Affordable Modification Program to provide relief to families at risk of foreclosure. Consumers who could not make their mortgage payments have been able to seek changes through the program to reduce their monthly payment and prevent foreclosure. With the program expiring in January 2017, the industry is beginning to develop new foreclosure relief options appropriate for a post-crisis environment.

The CFPB principles announced today call for assistance to consumers facing foreclosure that is accessible, affordable, sustainable, and transparent. These principles span the spectrum of home-retention options such as forbearance, repayment plans and modifications, and home-disposition options such as short sales and deeds-in-lieu. In summary, the principles promote:

  • Accessibility: Consumers should easily be able to obtain and use information about loss mitigation options, and how to apply for those options.
  • Affordability: Repayment plans and mortgage loan modifications should generally be designed to produce a payment and loan structure that is affordable for consumers.
  • Sustainability: Loss mitigation options used for home retention should be designed to provide affordability throughout the remaining or extended loan term.
  • Transparency: Consumers should get clear, concise information about the decisions servicers make.

The Departments of Treasury and Housing and Urban Development and the Federal Housing Finance Agency have also issued a joint white paper on this topic that details lessons learned from the program, and core principles they deem necessary in future loss mitigation frameworks.

The principles announced today by the Bureau do not establish binding legal requirements but instead  are intended to complement ongoing discussions among industry, consumer groups, and policymakers. The CFPB believes these principles are flexible enough to apply to an array of approaches, and recognize the interests of consumers, investors, and servicers.

The Consumer Protection Principles are available at:



4 Responses to “Consumer Financial Protection Bureau Outlines Guiding Principles For The Future Of Foreclosure Prevention”
  1. Tom says:

    The best thing people could do at this point is to video record all visits with their lawyers and video record all appearances in court.
    People have decided to video record law enforcement on the streets, now it’s time to video record all visits with the rest of the law that has been violating their oaths of office, and clearly involved in the fraudclosures.
    If the lawyers and courts deny your right to video record everything involved during the fraudclosures for your own protection, they should then drop the case.
    People have the right to protect themselves, and it’s been made very clear that no law enforcement agency out there is about to protect the victims of this massive foreclosure scam!
    Actually all mortgages should be video recorded when they are made with the lender, before and up to the closing.
    Thieves don’t like to be video recorded while performing their theft!!!

  2. Tom says:

    ACCESSIBILITY, AFFORDABILITY, SUSTAINABILITY, TRANSPARENCY are nothing but a bunch of BS words that mean absolutely nothing, except to give people more false hope.
    Once you are targeted by the fraudclosure scam, you will lose!

    As long as there is force placed insurance, the banks will force as many of those loans into default as possible to collect that insurance payout!
    The first time around they had PMI (Private Mortgage Insurance for loans with low down payments. Anything 20% or less had to have that PMI.
    Now they have added a new one for borrowers that put 20% or more for a down payment called MIP (Mortgage Insurance Premium)
    Basically the same scam and they just moved the letters around!
    (Since the homeowners are paying the premiums for that force placed insurance, why can’t they benefit from that insurance instead if something causes them some form of financial hardship? If that force placed insurance was removed from the banksters to collect, the motivation to force foreclosures would stop!)

    I went through this fraudclosure BS back in 2011, and after I got into a better financial position, they still forced the foreclosure to get that PMI payout.
    I tried to bring my account current, but they denied to accept payment, and I could have paid my loan off in full, but that was also denied.
    They made more money by forcing the foreclosure, collecting the 80% insurance payout from the government, and then reselling the house at 50% less of what I owed.
    So there was no way they were going to help me stay in my home.

    They have the power of the corrupt courts backing them, who can block any offers you may have going on with the bank.
    After I was denied the right to pay off my loan, Chase offered to do a Deed in Lieu of Foreclosure with a cash incentive.
    My lawyer said that was blocked by the court, and in court on the last day, they said my lawyer quit! So I lost another $1,500 for hiring another lawyer!

    They also have the power to change your locks, “WITHOUT A COURT ORDER”, before the foreclosure is completed. So if you are in the process of moving, because they have blocked every effort you have made to keep your house, you might want to hire a security guard to watch your property. Otherwise you will lose your personal property too!

    Even with the help from the Court Recorder supplying people with documents that proved the fraud, because he wanted the theft stopped too, that didn’t help!

    They will NOT inform you of upcoming court dates to try to steal your home on default by NOT having you show up in court.

    The modification scam is just a delay tactic until they can fit you into their court schedule!

    The document viewing room says that it is a Class 4 Felony for document tampering, but that doesn’t apply to lawyers. Keep an eye on your file before and after the foreclosure.
    You will most likely see a large amount of documents added to your file afterwards, that you were supposed to have received, but they failed to send them to you.

    Anything you bring to present in court will be denied and the judge will say that “it is past the discovery phase”, so you basically have no defense at all.

    Even with me repeatedly asking them who owned my loan, since they kept stating that Chase Bank sold my loan, but they said that they had no idea who owned it.
    So how could they foreclose on something they had no idea of who owned the loan?
    They still did because it was a total scam from day one when the loan was issued.
    Where was the Chain of Title?
    Also the Court Recorder provided me with the documents that showed that all documents went back to Chase Bank, who supposedly didn’t own the loan anymore!

    You can file as many complaints as you want, but nothing will be done to stop the theft!
    Law enforcement only protects the wealthy corrupt and you will lose!!!
    If you file complaints against the judge, he will probably call you from his cell phone, like he did when he called me, and ask you why everyone is filing complaints against him.
    Isn’t it illegal for a judge to contact anyone that has a case in his courtroom?
    Apparently not! They are above all laws!!!
    I also understand that he retired about a year later a very wealthy man from all the kickbacks he received to force the fraudclosures through his courtroom.
    Nothing will happen to him because he is above all laws!!!

    The best you can probably do is receive an “IN REM” Foreclosure, which they say is against the property only and not you personally.
    They do that to supposedly give people a break, who could have brought their accounts current or paid off their loans in full.
    It may also wipe out the deficiency, and it doesn’t show on your credit report, and it basically shows as never happening.

    And if people do more investigating, they will find that most of those loans were VOID to begin with. It was all a huge scam before the scam!
    Why do you think the TOO BIG TO FAIL AND TOO BIG TO JAIL banks were bailed out?
    If they were allowed to fail, their scam would have been exposed a long time ago!
    Actually people have said that what has occurred is DOMESTIC FINANCIAL TERRORISM.
    And we’re supposed to worry about foreign terrorists?

    Wake up people!!!

  3. louise says:

    Yes, Mike I agree. The servicers are stealing the money paid by homeowners for their mortgage. They do not know who the creditor is so they are pocketing the money. And, TARP paid for all the mortgages and notes, and the banksters and the servicers sold the alleged Note multiple times.

  4. mike Drouin says:

    Who was the CFPB really helping ??? When you think about it , if all the Homeowners were involved in a securities contract and the Mortgages were a Fraud , then weren’t they helping the criminal Banks who perpetrated the theft of your personal and real property ??? I can’t believe the magnitude of the LIE that was perpetrated on the American Homeowner !!!! Let us help you stay in the home the Banks are trying to steal from you !!!!

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