New CFPB Rule Protects Homeowners Facing Foreclosure
CONTENTS
- Rule Coverage and Sunset
- Significant Private Remedies for Rule Violations
- Temporary Procedural Safeguards Prior to Initiation of a Foreclosure
- No Initiation of Foreclosure Unless One of Three Safeguards Are Met
- What Counts as “Communication from The Borrower” for Purposes of the Third Safeguard
- Practical Implications and Examples of Procedural Safeguards
- Rule’s New Anti-Evasion Exception for Streamlined Loan Modification Offers
- New Rule Provisions Regarding Escrow Payments
- New Rule Requires Resumption of Reasonable Diligence
- Additional Early Intervention Requirements
- Clarifications to CFPB Commentary Concerning Live Contacts
- NCLC Webinar Detailing the New Rule
A new CFPB final rule effective August 31, 2021, amends RESPA Regulation X early intervention and loss mitigation requirements, found at 12 C.F.R. §§ 1024.39 and 1024.41. The amendments provide significant new rights to homeowners exiting a mortgage loan forbearance or experiencing a payment hardship related to the COVID-19 pandemic. See 86 Fed. Reg. 34,848 (June 30, 2021). For a redline version click here. The new rule:
- Requires servicers to comply with additional procedural safeguards before initiating foreclosure;
- Permits a servicer to offer certain streamlined loan modifications without requiring the borrower to submit a complete loss mitigation application;
- Specifies how and when a servicer must resume reasonable diligence efforts at the end of forbearance; and
- Imposes new early intervention requirements for borrowers in default.
More here…
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I don’t doubt your experiences in the least, Mr. Beckham. No one who has litigated long, and well, in this arena doubts you.
In Illinois, our governor has signed into law sealing all eviction orders until August of 2022. For myself and others that were foreclosed on by Bank of America and other mortgage servicer crooks that were not in default on their mortgage payments can breathe a little easier. If fact, I was making double payments on my mortgage when BoA filed for foreclosure. To my knowledge, I am the only one that filed an appeal from denial of my 1301(e) motion. I have raised issues never before raised in Illinois or any other state. Legal experts that I have consulted states that a case like mine never leaves the trial court. But if a judge gets enough bribe money, they will rule against well established state and federal law. The last judge that ruled against well established state law to approve the sale of my home literally ran out of the courtroom yelling “go to the appellate court” then retired. If one does enough pro se litigation in Illinois court, you will find our courts are nothing more than criminal enterprises.