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New Rules to Fight Foreclosure

April 16, 2012 Leave a comment

Last week, Congress mandated changes in the rules covering the mortgage servicing industry.

According to the Associated Press, “The Consumer Financial Protection Bureau‘s proposed rules would require mortgage servicers to give all borrowers standardized monthly statements and warn borrowers about interest rate or insurance change.”

The proposed rules also require the mortgage servicers to make “good-faith efforts” to contact borrowers at risk of foreclosure and give them options to avoid losing their homes and also include stipulations for improving record-keeping and providing foreclosure counseling to those who need it.

The Consumer Financial Protection Bureau, which supervises U.S. payday lenders, mortgage companies and private student lenders and also can write rules to supervise big lending companies and institute fines, will formally propose the rules this summer and finalize them by January 2013.

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