Mortgage servicers would be required to focus on helping their mortgage borrowers, and not foreclosing, when a homeowner asks for help under a rule proposed Wednesday by the federal consumer financial protection agency.
The proposal would also, according to the Consumer Financial Protection Bureau (CFPB), make it simpler for servicers to help by reducing paperwork requirements. The agency asserted that would improve communication with borrowers and “ensure critical information is provided in languages borrowers understand.”
The bureau highlighted several points about the proposal, including that it would stop dual tracking and limit fees, reduce delays by streamlining paperwork requirements, improve borrower-servicer communications, and “ensure borrowers receive critical information in languages they understand.”
If made final, the bureau noted, the new provisions would not apply to small servicers, and that all existing requirements remain in effect until the effective date of a final rule.
Comments are due by Sept. 9, CFPB said.