foreclosure

Subscribe to foreclosure

This summer, the CFPB issued its long-awaited proposed rule amending the mortgage servicing rules under Regulation X, with a focus on loss mitigation procedures, foreclosure protections, and language access. These changes were previewed by the CFPB as a means to streamline, and add flexibility to, the loss mitigation process, in light of the industry’s successful efforts during the COVID-19 pandemic.… Continue Reading

We discuss various issues faced by lenders and servicers when attempting to foreclose on “zombie” mortgages, meaning second mortgages on which the borrower has not made a payment for a considerable period of time and the lender or servicer has not previously taken action to foreclose.  First, we look at the CFPB’s May 2023 advisory guidance on the enforcement of time-barred mortgage loans. … Continue Reading

As previously reported, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance from the Treasury Department’s Homeowner Assistance Fund (HAF).

Fannie Mae and Freddie Mac have issued guidance documents implementing this requirement in Updated Lender Letter 2021-01 and Bulletin 2022-8, respectively. … Continue Reading

On Monday, the CFPB and DOJ announced that they sent joint letters to landlords/property management companies and mortgage servicers regarding the protections given to servicemembers by the Coronavirus Aid, Relief and Economic Security (CARES) Act and the Servicemembers Civil Relief Act (SCRA).

Letter to landlords/property management companies.  The letter only addresses SCRA protections for early lease terminations and evictions. … Continue Reading

The Centers for Disease Control and Prevention’s (CDC) eviction moratorium expired on July 31, 2021.  Meanwhile, at President Biden’s request, the Acting Director of the Federal Housing Finance Agency, and the Secretaries of the U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Treasury, and U.S.… Continue Reading

On June 28, 2021, the CFPB issued its Mortgage Servicing COVID-19 Final Rule (the “Final Rule”).  The Final Rule, which amends Regulation X, is effective August 31, 2021, and comes at the same time as certain related updates from other Federal agencies.  We discuss those topics, along with an overview of the Final Rule, below.… Continue Reading

On April 5, 2021, the CFPB issued a Notice of Proposed Rulemaking to amend Regulation X in various ways related to the COVID-19 national emergency (the “Proposed Rule”).  With the goal of enhancing protections for impacted borrowers, the Proposed Rule amends aspects of the early intervention requirements (12 C.F.R. § 1024.39), and loss mitigation procedures and foreclosure protections (12 C.F.R.… Continue Reading

In response to directions from the Biden Administration, the following actions have been taken:

Federal student loans.  The Acting Secretary of Education has extended the following relief on ED-held federal student loans until September 30, 2021:

  • Suspension of loan payments
  • Suspension of collection efforts
  • Setting of interest rate at 0%

Foreclosures and Evictions. … Continue Reading

The CFPB has filed an amicus brief in the U.S. Supreme Court in support of the respondent/law firm defendant in Obduskey v. McCarthy & Holthus LLP, et al., a Tenth Circuit decision that held that a law firm hired to pursue a non-judicial foreclosure under Colorado law was not a debt collector as defined under the Fair Debt Collection Practices Act. … Continue Reading

The CFPB announced that, together with the Florida AG, it has obtained judgments against several Florida companies and their individual operators who were charged in a complaint filed in a Florida federal court with using deceptive marketing practices and collecting illegal advance fees from consumers seeking mortgage relief services.  A default judgment entered against the companies and stipulated judgments entered against the individuals provide for a judgment against each defendant for equitable monetary relief in the amount of $11,730,579, representing the amount of illegal fees allegedly paid by consumers. … Continue Reading