The Consumer Financial Protection Bureau (CFPB) rules went into effect on January 10, 2014, the same date as the changes to Michigan’s new foreclosure law. The CFPB has published a complete guide to the rules, but in case you don’t want to read all 104 pages of the reference guide, here are some of the highlights of the new national guidelines:
- Before the homeowner is 45 days delinquent, servicer must send written notice to homeowner encouraging the homeowner to contact the servicer.
- The servicer may not file for foreclosure until homeowner is more than 120 days delinquent.
- The servicer may not begin foreclosure process while the homeowner’s application for mortgage assistance is being evaluated.
- If the homeowner submits a complete application for mortgage assistance 37 days before a schedule foreclosure sale, the application must be evaluated by the servicer for loss mitigation options and give the homeowner written notice of the decision.
- If the homeowner is denied for a loan modification, the servicer must give specific reasons for the denial.
The CFPB is vigilant about following up on potential rule violations; consumers may submit a complaint by calling 855-411-2372 or by completing the form at http://www.consumerfinance.gov/complaint/
Michael McAuliffe is CHN’s former Foreclosure and Intake Specialist.
