The Consumer Financial Protection Bureau is expected today to roll out a set of new rules to prevent foreclosures, the New York Times reported. The rules will focus on mortgage servicers, which gather loan payments and assist mortgage borrowers who are having trouble making their payments. The new rules take effect January 2014.
During the financial crisis, some of these mortgage servicers lost paperwork and made errors on loan modifications. The new rules will mandate that these servicers maintain accessible records on their borrowers and document, in a reliably and timely fashion, borrowers’ payments. Any errors must be fixed within a 30-day period.
As previously reported, the bureau last week released new rules designed to curb risky lending practices and to educate borrowers about exactly what kind of loan they’re getting. That set of regulations will go into effect on Jan. 21, 2013. [NYT] —Zachary Kussin