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Consumer Watchdog Warns Lenders Against “Avoidable” Foreclosures

Deputy Director of CFPB Dave Uejio (CFPB, iStock)

A wave of potential foreclosures is imminent — and mortgage lenders may be hooked if they don’t help stop the flow.

According to Bloomberg News, the Consumer Financial Protection Bureau has warned lenders that it must help prevent “avoidable foreclosures” if the foreclosure program ends or faces penalties.

“Servicers who prioritize struggling families have nothing to fear about our surveillance,” CFPB’s deputy director Dave Wesio said in a statement. “But we are responsible for those who do harm to homeowners and their families.”

In a bulletin issued Thursday, federal oversight agencies advised lenders at banks and other institutions to advise borrowers on how to change their loans when tolerance relief ends. More than 2 million homeowners have delayed mortgage payments by at least 90 days, and many have postponed payments.

“There is a tsunami of suffering homeowners in need of help,” Uejio said.

Government officials want to avoid the same surges that occurred during and after the Great Depression, when millions of foreclosures were filed. [Bloomberg News] — Orion Jones

Consumer Watchdog Warns Lenders Against “Avoidable” Foreclosures Source link Consumer Watchdog Warns Lenders Against “Avoidable” Foreclosures

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