EAST PROVIDENCE, R.I. (WPRI)-- Federal regulators finalized rules Thursday aimed at helping homeowners facing foreclosure to keep their homes.
The Consumer Financial Protection Bureau is targeting mortgage companies that once surprised homeowners with unexpected fees and unfair service.
Under the new rules, mortgage providers are restricted from moving forward with a foreclosure while at the same time working with the borrower to avoid foreclosure, known as dual-tracking.
Other policies and procedures for handling homeowner accounts:
- Notification of foreclosure alternatives
Servicers must let borrowers know about their loss mitigation options to retain their home after borrowers have missed 2 consecutive payments.
- No foreclosure sale until all other alternatives considered
Servicers must consider and respond to a borrowers application for a loan modification if it arrives 37 days before a foreclosure sale.
The new rules will go into effect in January 14.
If you have a consumer problem you need help solving, contact the Call 12 For Action Center , Monday-Thursday from 11am-1pm at (401) 228-1850.
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