CFPB Issues Mortgage Servicing COVID-19 Rule

In response to a potential wave of borrowers exiting forbearance programs around the same time, the Consumer Financial Protection Bureau (CFPB or the Bureau) issued the 2021 Mortgage Servicing COVID-19 Rule (the Rule) that amends certain provisions of Regulation X to assist borrowers experiencing COVID-19-related hardships. The Rule, which becomes effective Aug. 31, 2021, is designed to assist mortgage borrowers by establishing temporary safeguards to ensure borrowers have an opportunity to be reviewed for loss mitigation before their mortgage servicer can initiate foreclosure.

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