Mortgage servicers are the folks who collect your mortgage payments. Under new rules issued today by the Consumer Financial Protection Bureau, servicers will have to change their ways. Perhaps the most important change, as explained in this National Law Journal article, is "[a]t the first sign of trouble, when a homeowner has missed two consecutive mortgage payments, the servicer must let the homeowner know about alternatives to foreclosure. The information must be provided in writing, and describe all the options available from the loan owner – not just the ones that are most financially favorable to the servicer." The Washington Post also has a story on the new rules.
UPDATE: Go here for the CFPB's press release on the new mortgage servicing rules. The press release comprehensive reviews the rules' key provisions. Go here for a summary of the rules. Go here for a fact sheet about the rules.
As long as it doesn't make my (http://www.hamiltonmortgagebrokers.com) mortgage more expensive, then I don't really mind whatever rules they put in place. Especially when the housing market sucks, especially here in Hamilton. Little too expensive for my taste.
Posted by: Bill Shields | Monday, January 21, 2013 at 10:26 PM