Northfield Savings Bank VT’s Post

Remember the CARES Act #mortgage forbearance program that was created to prevent #foreclosures for people whose income was affected by the COVID-19 pandemic? Well, the pandemic may officially be over, but the program lives on...although not as it was originally designed. According to the Mortgage Bankers Association, only 7.9% of the approximately 115,000 borrowers in the forbearance program are there due to COVID-related issues; 75.9% are there due to "temporary hardships;" and another 16.2% due to extreme weather events. Are servicers now using the program as a catch-all for delinquent borrowers? Perhaps another reason that foreclosure activity is as low as it is today. Even with low foreclosure counts, servicers need legal support, and the Hello Solutions Network is here to help. Let us know how we can help you! https://lnkd.in/gqnyTgQe

Check out Bradley's latest Financial Services Perspectives post for insights into the CFPB’s proposal to amend Regulation X and sign up for a free webinar on July 15 for additional information on the proposed changes.

Discover key details about the CFPB’s proposed amendments in our latest Financial Services Perspectives post. Join us on July 15 for a comprehensive webinar on the proposed changes.

In their post on the Financial Services Perspectives blog, authors Robert Maddox, CMB, CFE, Christian Hancock, Tom Mostellar, and Sarah Atkinson dive into the potential implications of renewed federal scrutiny for nonbank mortgage companies, as outlined in the recent FSOC report. Explore how these findings may impact both NMCs and the broader mortgage industry. [https://bit.ly/4dzpSg6]

The CFPB is poised to make significant changes to loss mitigation requirements. Proposed RESPA changes, early intervention, notification of loss mitigation determination, credit reporting consistency, and assistance for those with limited English proficiency are all on the table in their most recent proposed rule, “Streamlining Mortgage Servicing for Borrowers Experiencing Payment Difficulties.” Our latest blog, “CFPB Proposes New Rule for Mortgage Servicers.” breaks down the proposed rule and explains how CLARIFIRE® is uniquely designed to help your organization implement changes like this quickly and easily for uninterrupted servicing of your borrowers’ needs. Don’t forget to submit your commentary to the CFPB on or before September 9, 2024! https://bit.ly/4dxVaDB

New Post: Solving the credit riddle: providing mortgage professionals and borrowers the tools they need

CFPB report: Bank of America Deceiving homeowners and failing to properly evaluate them for repayment options: Some servicers sent notices to homeowners in financial distress that stated they had been approved for a repayment option. In fact, no final decisions had been made, and some of the homeowners were ultimately rejected. Examiners also found servicers sent some homeowners false notices saying that they had missed payments and should apply for repayment options. Servicers also improperly denied requests for help and failed to evaluate struggling borrowers for repayment options as required under the CFPB’s mortgage servicing rules.

Anyone still waiting for the rumored surge of #foreclosures coming out of the government's #mortgage forbearance program probably hasn't been paying very close attention. According to the Mortgage Bankers Association, the number of borrowers still in forbearance is down to 105,000 (out of over 50 million active mortgages), and #mortgageservicers have worked out successful exits with over 8.2 million other borrowers since the program started in 2020. The overwhelming majority of those who've exited the forbearance program continue to make on time payments. There is no wave of foreclosures coming from the forbearance program: according to ATTOM, May foreclosure activity is actually down from last year. But if you're a servicer or investor who's looking for top notch legal support for those loans that are delinquent or in default, the Hello Solutions Network can help virtually anywhere in the country. Let us know how we can help you! https://lnkd.in/g6tZk4vz

The Consumer Financial Protection Bureau published proposed rulemaking to Regulation X. The proposed rulemaking is 196 pages and includes substantial proposed changes to Regulation X. Per the CFPB: "The Consumer Financial Protection Bureau (CFPB) today proposed new rules to make it easier for homeowners to get help when they are struggling to pay their mortgage. The proposal, if finalized, would require mortgage servicers to focus on helping borrowers, not foreclosing, when a homeowner asks for help. The proposed changes would also make it simpler for servicers to offer assistance by reducing paperwork requirements, improve communication with borrowers, and ensure critical information is provided in languages borrowers understand. The CFPB is requesting comment about several other topics, including possible approaches it could take to ensure servicers are furnishing accurate and consistent credit reporting information for borrowers undergoing review for assistance." Link below: https://lnkd.in/g2mBaA_7

This is a new report Laurie Goodman and I wrote, and belongs to the series of loss mitigation strategies. In this report, we examined how many loans are saved due to the mortgage forbearance policies implemented during the pandemic. https://lnkd.in/gR9bAiYP