CFPB Final Rule on Foreclosures

[Andy Mirza]

I received a general e-mail this morning from FCI alerting note holders of a Final Rule from the CFPB that affects private investor owned notes with borrowers that have been affected by COVID.

The CFPB Final Rule amends RESPA and requires note servicers to comply with "procedural safeguards" prior to initiating foreclosure between August 31 and December 31, 2021.

Exceptions are loans that were 120+ days late before March 1, 2020, loans where statute of limitations expires prior to January 1, 2022, or if borrower abandoned property.

Bottom line: it looks like there will be more red tape navigating "procedural safeguards" if you want to foreclose on a loan that became delinquent during COVID.

For more info, try googling "CFPB Final Rule Part 1024 - Real Estate settlement Procedures Act (Regulation X)."

Definitely call your servicer or foreclosing attorney if you think it might affect an upcoming foreclosure.

[Chris Seveney]

@Andy Mirza

Here is a pdf of rule in case anyone wants 208 pages of light reading

https://files.consumerfinance.gov/f/documents/cfpb_covid-mortgage-servicing_final-rule_2021-06.pdf