Beginning January 2014, new CFPB (Consumer Financial Protection Bureau) rules to protect homeowners and consumers shopping for home mortgages went into effect. The rules sharply reduce the runarounds and stalling techniques frequented by the banks for both sort sales and loan modifications under the HAMP Making Home Affordable Program.
Virtually every mortgage now issued will be subject to these new rules. The rules set up a new type of mortgage referred to as a “Qualified Mortgage” which determine borrower eligibility to repay, prior to giving the loan. It considers such factors as borrower income, assets, debt and credit history.
For borrowers seeking Loan Modifications, there are added protections as well. Mortgage servicers will now have to call or contact the borrowers by the time they are 36 days late on their mortgage. The borrower can not initiate a foreclosure until 120 days delinquent and by that time, should have already offered certain options to the delinquent borrower with regard to loss mitigation.
Mortgage servicers can also not start a foreclosure while they are working on a submitted application for modification. This is an incredible win for homeowners in distress that are legitimately and diligently pursuing modifications due to financial hardships out of their control.
If the loan modification is denied, the lender must provide clear and concise information as to why it was denied, sent to the borrower explaining the reason for rejection.
Congress created the CFPB to make sure “financial markets work for the consumer” For more information you can contract the CFPB at (855) 411-2372 or contact us at the Law Offices of Jacqueline A. Salcines, PA
We process loan modifications, short sales as well as loan settlements and other loss mitigation options for our clients. We know how to put the new rules and regulations to work for you so that you don’t lose your home due to the banks runarounds.
Call today. The first consult is always free of charge and can provide you with peace of mind.
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LAW OFFICES OF JACQUELINE SALCINES, P.A. 706 S. DIXIE HIGHWAY SECOND FLOOR CORAL GABLES, FL 33146 TEL: 305.564.9255 J.SALCINES@SALCINESLAW.COM