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Agency urges banks to work with homeowners to prevent foreclosures


Agency urges banks to work with homeowners to prevent foreclosures
and last updated 2021-04-14 16:28:17-04
Millions of Americans have not been able to pay their mortgages in over a year, and fortunately, many are in mortgage forbearance. However, most of those forbearance periods end in just a few months and many could be in danger of losing their homes.
According to the Consumer Finance Protection Bureau (CFPB), at least one million Americans will be in “imminent danger of foreclosure” by October, and by December, that number could rise to more than 2 million.
“This is sort of an unprecedented situation,” said Mark McArdle, assistant director of mortgage markets at the CFPB. ....

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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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