A regulatory body in United States is trusted with ensuring consumers’ finances are protected has now accepted that they will aid in preventing wrongful home foreclosures. Regulatory bodies within the country are working to improve the massive lending market in the country.
When the housing bubble started taking place in 2006, rules were made by the Consumer Financial Protection Bureau (CFPB). They were based on current regulations which required a mortgage servicer the ability to grant irrefutable foreclosure protections to those borrowers who were struggling at least once in the lifetime. As of now, servicers, who are the channel for mortgage payments will have to bring forward those protections more than once. This will also borrowers to make payments after they have worked out an agreement. This will further lead towards foreclosure prevention.
The change will specifically be beneficial to those borrowers who have obtained a permanent loan modification and then suffer destitution. The rules are for family members as well. They support requirements which are related to loss mitigation, which as an alternative to foreclosure, allowing people to live in their homes and pay a certain proportion to lenders. Moreover, servicers will now have to punctually inform borrowers regarding when loss mitigation applications are completed.
The main aim of Consumer Bureau is to ensure that homeowners along with struggling borrowers are given equal treatment by their respective mortgage servicers and to ensure that no one is given unequal treatment and incorrectly foreclosed. According to a report in June, homeowners are being given incorrect or outdated information by their servicers.
If you require a mortgage, feel free to consult us for your mortgage concerns, we are available around the clock for you! We’ve got professionals who will be more than happy to advise you regarding your mortgage needs and recommend you the best budget that fits your needs. You can contact us at 877-509-3160.