January 17, 2013
CFPB Issues New Rules To Protect Homeowners in Foreclosure
The CFPB issued new rules today that increase protections for homeowners in foreclosure. The 2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules. These rules are a first national standard to replace a hodgepodge of practices that had been in place. The rules come on the footsteps of the $85 billion settlement last week arising from improper foreclosure practices by the ten banks who are parties to the settlement. The rules address many of the behaviors that infuriated homeowners over the last few years including
1. non–transparency as to interest rate adjustments, fees, penalties and other costs;
2. inability to speak with employees at mortgage servicers;
3. overly complicated forms and procedures;
4. glacially slow processing of information; and
5. capricious review standards.
The CFPB has a fact sheet about the rule.
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