The Consumer Financial Protection Bureau released a proposed rule on Monday that would bar servicers from starting on foreclosures until 2022. The CFPB also proposed streamlined processes for moving homeowners out of forbearance and into loss mitigation options. However, since the announcement, several industry leaders have expressed reservations about the blanket policy.
“My concern is that the bureau is overstepping its bounds and violating in essence agreements that have already been previously made,” said Dave Stevens, chief executive officer of Mountain Lake Consulting and former CEO of the Mortgage Bankers Association.
According to the CFPB, streamlining the process would allow servicers to get homeowners into less burdensome payments at a much quicker pace. But data shows that servicers are already serving borrowers well.