Consumer Agency Lays Out New Mortgage Rules
The government is forcing lenders to make it clearer how to avoid foreclosure and slow down the process.
From Reuters…
Under the new guidelines, servicers must alert mortgage borrowers who miss two consecutive payments and spell out options, such as changing the interest rate or extending the terms of the loan, that could help borrowers avoid foreclosure.
The rules preempt quick foreclosures by requiring servicers to wait until a loan is delinquent more than 120 days before beginning foreclosure proceedings, the bureau said.
Servicers have to implement the rules by next January. And small ones – managing fewer than 5,000 loans, like community banks – will be mostly exempt from the new rules.
Subscribe by email
Like this article? Sign up for our email updates and we’ll send you a regular digest of our newest stories, full of money saving tips and advice, free! We’ll also email you a PDF of Stacy Johnson’s ’205 Ways to Save Money’ as soon as you’ve subscribed. It’s full of great tips that’ll help you save a ton of extra cash. It doesn’t cost a dime, so why wait? Click here to sign up now.
