CONSUMER FINANCIAL PROTECTION BUREAU (CFPB) WARNS SERVICERS TO OBEY LOAN TRANSFER RULES

The Consumer Financial Protection Bureau (CFPB) , an agency created to protect consumers with their credit choices and concerns, whether auto, mortgage, student loans or other, has recently become very involved with lenders and their loss mitigation assistance to consumers.  On August 19th, the CFPB issued a bulletin for mortgage servicers, outlining how they should handle loan transfers.  Loan transfers are sales of mortgages, through assignments, from one lender to another, which today, with so many foreclosures and delinquent loans, is commonplace.

The bulletin includes a reminder to mortgage servicers to pay close attention to the new common-sense mortgage rules implemented by the CFPB in January 2014.  These rules pertain to foreclosure sales, and urges courts to stop foreclosure sales when loss mitigation applications, either loan modification or short sales, are pending and in the lenders hands 37 days prior to the foreclosure sale.  While courts are not bound by the rules, they are guidelines for the courts to follow, for the ultimate protection of American consumers.

In recent years, the numerous transfers between lenders, done either through botched assignments, or robo-signers, has affected consumers by failing to know who owns their loans.  Consumers are led to believe that one creditor owns the loan, when in fact the loan was transferred and the borrower never made aware, as required by Florida Statutes.

To inquire how the CFPB can work for you in your loss mitigation, loan modification or short sale pursuits, call us.  We can review your loan paperwork and advise whether a complaint can be filed again the lender, or whether the lender is in compliance with CFPB rules.

The first consultation is always free.

TRUST   |  COMMITMENT  |  RESULTS