May 24, 2013
A new lifeline announced today for homeowners facing foreclosure.
The Consumer Financial Protection Bureau has issued new rules for mortgage servicers that handle things like loan modifications and foreclosures.
Apparently many of the companies are unable to handle the flood of delinquent loans, and the feds say that's led to unnecessary foreclosures.
Now, there are restrictions that prohibit servicers from foreclosing on borrowers seeking loan modifications. There are also guidelines for issuing clear, straightforward mortgage statements.
Still, consumer advocates say the new rules don't go far enough.
