Gov Agency Warns Mortgage Companies: Get Ahead of Coming Surge in Foreclosures – News & Guts Media

“There is a tidal wave of distressed homeowners who will need help. Servicers who put struggling families first have nothing to fear from our oversight, but we will hold accountable those who cause harm to homeowners and families.”

A separate CFPB bulletin anticipates “an extraordinarily high volume of loans needing loss mitigation assistance” when mortgage relief policies associated with the pandemic eventually expire. It warns firms that they must clearly communicate with homeowners in need: “the Bureau is specifically concerned that some borrowers may not be receiving effective communication from servicers and that some borrowers may be at risk of not having their loss mitigation applications adequately processed.”

According to data from mortgage analytics firm Black Knight, three million Americans are behind on their mortgage. The federal government currently allows 18 months of forbearance – a policy that is set to expire later this year. The American Rescue Plan – passed last month – sets aside $10 billion in mortgage payment relief for Americans who need additional help. Another $27 billion is earmarked for rental assistance; by the end of February 13.5 million renters – 1 in 5 – were behind on their housing bills.

Gov Agency Warns Mortgage Companies: Get Ahead of Coming Surge in Foreclosures – News & Guts Media

Extend and pretend only works for so long. Then the bill comes due…