Tag:Foreclosure
CFPB Proposed New Rules to Expedite Mortgage Assistance
Earlier this year, the Consumer Financial Protection Bureau (CFPB) announced proposed rule changes to provide additional relief for homeowners struggling to make mortgage payments. The changes aim to amend the 2013 regulations governing mortgage servicing, ensuring that borrowers can more easily access mortgage assistance and therefore reduce the risk of unnecessary foreclosures. This comes at a time when economic uncertainties and evolving market conditions make it critical for homeowners to have quick access to resources to avoid foreclosures. The new proposal, if finalized, is designed to simplify the process for borrowers seeking mortgage assistance, improve communication between borrowers and servicers, and add safeguards to protect homeowners.
A New Housing Crisis: Navigating Changing Guidelines and Relief in a Pandemic
Patrick Gilsenan Associate Editor Loyola University Chicago School of Law, Weekend JD 2023 Americans looking for relief and regulatory protections in the face of an eviction and foreclosure crisis have been met with a patchwork system of confusing, temporary, and difficult to navigate government programs. The eviction ban established by the CARES Act has expired, …
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Compliance Failures Result in Hundreds of Accidental Foreclosures
Compliance failures in banking can often result in real harm to borrowers. In the case of Wells Fargo, a compliance error resulted in 400 of the bank’s customers losing their homes. Due to an issue in the bank’s software system, the institution denied loan modifications to borrowers who should have qualified. This latest failure adds to the myriad of issues Wells Fargo bungled over the past several months. For compliance professionals, the failure demonstrates the risks of automation in compliance, the importance of technical expertise, and the risks of decision-making without putting the interests of the customer first.