LIEB BLOG

How current events impact business & real estate

Friday, November 12, 2021

Foreclosure Protection Enhanced by Federal Regulators

On November 10, 2021, Federal Regulators issued a statement that lenders will no longer be afforded leniency with complying with mandatory mortgage servicing practices.

 

As background, Federal Regulators had previously issued an April 2020 Joint Statement, in response to COVID, that they would not take supervisory or enforcement action against mortgage servicers for failing to meet certain borrower-protective timing requirements so long as the servicers made good faith efforts to provide those required notices or disclosures and took the related actions within a reasonable period.

 

Now, as of November 10, 2021, Agencies will apply their respective supervisory and enforcement authorities, to address noncompliance or violations of Regulation X’s mortgage servicing rules.

 

Borrowers, who are looking for leverage in negotiating mortgage modifications, short sales, and deed-in-lieu workouts should be brushing up on Regulation X today.

  


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