CFPB’s bulletin on foreclosure expectations outlined

(April 16, 2021) In another summary prepared this week, NASCUS outlines a bulletin issued by the bureau April 6 detailing its expectations for mortgage servicers’ engagement with borrowers in the closing months of forbearance programs created to help them deal with the financial impact of the coronavirus crisis.

Like all NASCUS summaries, it is a benefit of membership.

The bulletin issued last week follows the bureau’s proposed rules (issued April 5) aimed at preventing “avoidable foreclosures.” The proposed rules, the agency said, seek to “ensure that both servicers and borrowers have the tools and time they need to work together to prevent avoidable foreclosures, recognizing that the expected surge of borrowers exiting forbearance in the fall will put mortgage servicers under strain.”

The follow-up bulletin (Bulletin 2021-02, “Supervision and Enforcement Priorities Regarding Housing Insecurity”), issued the following day, explains the CFPB’s intention to monitor servicers’ engagement with borrowers “at all stages in the process” in coming months and to prioritize mortgage servicing oversight work in carrying out its enforcement and supervision in the coming year.

NASCUS Summary: CFPB Bulletin 2021-02, Supervision and Enforcement Priorities Regarding Housing Insecurity (members only)