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
loss mitigation
CFPB Issues Proposed Rule Amending Mortgage Servicing Rules
By Reid F. Herlihy on
Posted in CFPB Rulemaking, Mortgage Servicing
The CFPB recently issued its long-awaited proposed rule amending the mortgage servicing rules under Regulation X, with a focus on streamlining and expanding the loss mitigation procedures and foreclosure protections. The amendments have been touted as a means to streamline the loss mitigation process, with a nod to the laudable approach taken by industry during the COVID-19 pandemic.… Continue Reading
Department of Veterans Affairs Enacts Sweeping Loss Mitigation Program Changes
By Ballard CFS Group on
The Department of Veterans Affairs (VA) made significant changes to its loss mitigation program this month, launching its awaited Veterans Affairs Servicing Purchase Program, and implementing a 40-year loan modification term. Details of those developments are provided below.
Extension to 40-Year Loan Modification Term
On April 17, 2024, the VA issued Circular 26-24-8, which extends the available term of its loan modification option.… Continue Reading
HUD Announces FHA Loan Payment Supplement Loss Mitigation Program
By Richard J. Andreano, Jr. on
The U.S. Department of Housing and Urban Development (HUD) recently announced a Payment Supplement loss mitigation program for Federal Housing Administration (FHA) insured Title 2 mortgage loans, the details of which are set forth in Mortgagee Letter 2024-02. Mortgage servicers may begin implementing the Payment Supplement on May 1, 2024, but must implement the solution for all eligible borrowers by January 1, 2025.… Continue Reading
CFPB Highlights Mortgage Servicing Examination Findings and Technology Issues
By Reid F. Herlihy on
In an unmistakable warning shot to mortgage servicers, the CFPB recently issued a “Mortgage Servicing Special Edition” of its Supervisory Highlights. The CFPB also updated portions of its Mortgage Servicing Examination Procedures.
In the Bureau’s accompanying press release, and throughout the Supervisory Highlights, there is a particular focus on perceived technological failures.… Continue Reading