Consumer Protection Group Proposes Rule to Prevent Foreclosu

Consumer Protection Group Proposes Rule to Prevent Foreclosures Until 2022


Loans placed in forbearance program early in the pandemic will reach the end of their forbearance period in September or October, the CFPB said.
As many as 1.7 million borrowers are expected to exit forbearance programs around that time and be at risk of foreclosure — a figure that dwarfs anything mortgage servicers have seen, CFPB Acting Director Dave Uejio said Monday.
Such a foreclosure cliff would disproportionately impact Black, Hispanic, Native American, rural and low-income homeowners, the CFPB said.
"The CFPB is worried about a prospective cliff in the future," said Patricia McCoy, a professor at Boston College Law School and the CFPB's former assistant director for mortgage markets.

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