CFPB Proposes New Rules to Prevent Foreclosures

The regulations would require mortgage servicers to exhaust all assistance options before foreclosing on struggling homeowners.

The proposed rules build on pandemic-era protections for borrowers facing financial hardship.
Servicers must provide tailored notices in English and Spanish, detailing available assistance and loan ownership.
The changes aim to eliminate 'dual tracking,' where foreclosure proceedings begin while loan modifications are considered.
Small servicers handling fewer than 5,000 loans are exempt from the new requirements.
Public comments on the proposal will be accepted until September 9.