RESOURCES FOR INDIVIDUALS
COVID-19: CFPB Issues Rules to Facilitate Smooth Transition as Federal Foreclosure Protections Expire
CFPB issues final rule on COVID-19 forbearance
On June 28, 2021 the Consumer Financial Protection Bureau (CFPB) issued a final rule for its federal mortgage servicing regulations as part of an effort to create safeguards for the phaseout of the foreclosure moratorium. The rule, called the 2021 Mortgage Servicing COVID-19 Rule, comes into effect on Aug. 31, 2021. In total, over 7 million consumers utilized the COVID-19 hardship forbearance offering, and 2 million remain in forbearance today, making an orderly transition away from the program vital in order to maintain the housing market’s stability.
The new rules focus on efforts to avoid foreclosures by giving borrowers meaningful opportunities to pursue loss mitigation, allowing servicers to help borrowers faster, and communicating to borrowers all of their options to avoid foreclosure. Foreclosures will still be permitted to start if a borrower has abandoned their property, if the mortgage was 120 days behind before March 1, 2020, if the borrower is 120 days behind and has not responded to outreach, or if the borrower has been evaluated for options and none will avoid foreclosure.
CFPB plans on working further with federal agencies to ensure an equitable and orderly transition into a post-pandemic housing market.
On June 28, 2021 the Consumer Financial Protection Bureau (CFPB) issued a final rule for its federal mortgage servicing regulations as part of an effort to create safeguards for the phaseout of the foreclosure moratorium. The rule, called the 2021 Mortgage Servicing COVID-19 Rule, comes into effect on Aug. 31, 2021. In total, over 7 million consumers utilized the COVID-19 hardship forbearance offering, and 2 million remain in forbearance today, making an orderly transition away from the program vital in order to maintain the housing market’s stability.
The new rules focus on efforts to avoid foreclosures by giving borrowers meaningful opportunities to pursue loss mitigation, allowing servicers to help borrowers faster, and communicating to borrowers all of their options to avoid foreclosure. Foreclosures will still be permitted to start if a borrower has abandoned their property, if the mortgage was 120 days behind before March 1, 2020, if the borrower is 120 days behind and has not responded to outreach, or if the borrower has been evaluated for options and none will avoid foreclosure.
CFPB plans on working further with federal agencies to ensure an equitable and orderly transition into a post-pandemic housing market.
OTHER RESOURCES
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Sección de Recursos
Neighborhood Nonprofit Housing Corporation: Neighborhood Nonprofit Housing Corporation offers a number of housing resources for various housing settings for diverse populations in Northern Utah. Salt Lake Community Action Program: SL Community Action Program offers a rounded option of services for low-income individuals and families, including housing case management. 2-1-1 Resources & Referral United Way 2-1-1 Information and Referral is a statewide service of United Way of Salt Lake that connects people to important health, human, and community service programs. AAA Fair Credit Foundation AAA Fair Credit Foundation is a nationally certified 501(c)(3) non-profit organization providing financial counseling, financial education, debt management, and asset-building programs Disability Law Center The Disability Law Center (DLC) is a private non-profit organization. We are designated as the Protection and Advocacy agency for the state of Utah to protect the rights of people with disabilities in Utah. National Housing Preservation Database The National Housing Preservation Database allows users to search for affordable housing by area, housing type, funding stream and other characteristics of affordable housing. Salt Lake Community Action Program Salt Lake Community Action Program is a non-profit organization that provides a wide range of services aimed at helping low-income people become self-sufficient. Utah Affordable Housing Database The Utah Affordable Housing Database is operated by the state of Utah and provides up to date information on affordable housing choices in Utah. Users can search based upon their individual housing needs. Utah Labor Commission Antidiscrimination & Labor Division The Antidiscrimination & Labor Division's Fair Housing focus is to administer and enforce Utah's Fair Housing Act. Utah Legal Services Utah Legal Services is a nonprofit law office committed to making equal justice a reality by providing free legal help in non-criminal cases to low-income Utahns |
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