New Consumer Financial Protection Bureau Mortgage Servicing Rules Are Now In Effect

On January 10, 2014, the long-awaited Consumer Financial Protection Bureau (CFPB) mortgage servicing rules went into effect. Advocates and homeowners welcome these necessary protections and are hopeful the new rules will ease confusion for homeowners and advocates pursuing loss mitigation options. The new rules will mean fewer homeowners needlessly placed into foreclosure and greater assistance from servicers as they work to save their homes.

The new CFPB mortgage rules level the playing field by providing stronger consumer protections and addressing many systemic issues. The rules, for example, require:

• • improved communications between servicers and homeowners
  • prompt investigation and response to errors by mortgage servicers
  • clarity as to all the options the homeowner has when trying to avert foreclosure.

The Center applauds the CFPB for their efforts in protecting and enforcing the rights of homeowners.

For more information on the new rules, the CFPB’s “Help For Struggling Borrowers” guide and “Mortgage Rules” fact sheet are great resources. If you would like to be connected to free help, please call 311 and ask for the Center for NYC Neighborhoods.