DFPI moves to protect California homeowners with mandatory reporting requirements for mortgage servicers oc-breeze.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from oc-breeze.com Daily Mail and Mail on Sunday newspapers.
In its
February 2021 Bulletin, the California Department of Financial Protection and Innovation (DFPI) reminds licensed mortgage loan servicers that DFPI examinations will include processes to determine compliance with state and federal laws providing consumer protections with regard to COVID-19-related foreclosures. The DFPI notes that these laws “include provisions allowing for forbearance of mortgage payments, post-forbearance options forbidding the requirement of lump sum payments, and the extension of the California Homeowner Bill of Rights to tenant occupied principal residences.” The DFPI also notes that California law protects both federally backed and non-federally backed mortgage loans.
The bulletin also warns that the DFPI will take the necessary actions to ensure that mortgage loan servicers comply with the homeowner protections in the California Homeowners Bill of Rights (which was enacted in 2013).
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Last year, our blog, What Does CA AB 3088 Mean for Mortgage Servicers?, examined some new and notable obligations California imposes on mortgage servicers, including requirements to provide forbearance denial notices. In that blog, we promised the publication of a Part II that further expanded upon CA AB 3088. In this Part II, we discuss some of the ways in which CA AB 3088 significantly expands servicers’ obligations under the California Homeowners’ Bill of Rights, and we also discuss some fairly significant tension between CA AB 3088 and Regulation X of the CFPB Mortgage Servicing Rules.
2 Calif. Rulings Offer Lessons As Foreclosure Crisis Looms By
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