Even though the COVID-19 pandemic may be close to ending, that does not mean that consumer protections put into place during the pandemic are on the way out, too. In this case, protections put in place to keep renters and homeowners in their residences and not face evictions or foreclosures may continue through the end of this year, according to a number of published reports.
For the accounts receivable management industry, this could be considered good news. Individuals who do not have to pay rent or a mortgage may have additional funds to help pay other financial obligations.
The Consumer Financial Protection Bureau is finalizing a rule that would prohibit mortgage servicers from starting a foreclosure on most mortgages until after December 31, according to a published media report. The rule will become effective before the end of August and will prohibit foreclosure proceedings from being initiated unless the homeowner are in the process of negotiating agreements with their servicers to avoid foreclosure but have not yet applied for forbearance, or the homeowners have abandoned their homes without notifying the servicer, or the homeowners did not respond to multiple inquiries from servicers about whether the homeowners wish to remain in their residences.
At the same time, Rep. Maxine Waters [D-Calif.], the chairwoman of the House Financial Services Committee, sent a letter to a number of federal regulators asking that they extend their moratoriums on foreclosures until the CFPB finalizes its rule.
“I commend CFPB for its attention to mortgage servicing issues at such a critical time, as many borrowers’ forbearance periods are set to expire as early as September 2021,” wrote Rep. Waters. “Although vaccinations have increased protections against the coronavirus itself, measures addressing systemic financial risks remain to be seen in the fallout of the pandemic crisis…As we saw in the last recession, any lapse in foreclosure protections at this time stands to threaten the housing stability and wealth building opportunities for generations of households of color.”
At the same time, a moratorium on evictions put into place by the Centers for Disease Control and Prevention are set to end next week.
Even though the COVID-19 pandemic may be close to ending, that does not mean that consumer protections put into place during the pandemic are on the way out, too. In this case, protections put in place to keep renters and homeowners in their residences and not face evictions or foreclosures may continue through the end of this year, according to a number of published reports.
For the accounts receivable management industry, this could be considered good news. Individuals who do not have to pay rent or a mortgage may have additional funds to help pay other financial obligations.
The Consumer Financial Protection Bureau is finalizing a rule that would prohibit mortgage servicers from starting a foreclosure on most mortgages until after December 31, according to a published media report. The rule will become effective before the end of August and will prohibit foreclosure proceedings from being initiated unless the homeowner are in the process of negotiating agreements with their servicers to avoid foreclosure but have not yet applied for forbearance, or the homeowners have abandoned their homes without notifying the servicer, or the homeowners did not respond to multiple inquiries from servicers about whether the homeowners wish to remain in their residences.
At the same time, Rep. Maxine Waters [D-Calif.], the chairwoman of the House Financial Services Committee, sent a letter to a number of federal regulators asking that they extend their moratoriums on foreclosures until the CFPB finalizes its rule.
“I commend CFPB for its attention to mortgage servicing issues at such a critical time, as many borrowers’ forbearance periods are set to expire as early as September 2021,” wrote Rep. Waters. “Although vaccinations have increased protections against the coronavirus itself, measures addressing systemic financial risks remain to be seen in the fallout of the pandemic crisis…As we saw in the last recession, any lapse in foreclosure protections at this time stands to threaten the housing stability and wealth building opportunities for generations of households of color.”
At the same time, a moratorium on evictions put into place by the Centers for Disease Control and Prevention are set to end next week.
