Mortgage rules to be proposed
WASHINGTON – The federal government plans to propose new rules today that will give homeowners more ways to avoid foreclosure and get an accurate accounting of their monthly mortgage payments.
Congress mandated changes in the rules covering the mortgage servicing industry in the wake of the 2008 financial crisis.
The Consumer Financial Protection Bureau’s proposed rules would require mortgage servicers to give all borrowers standardized monthly statements and warn borrowers about interest rate or insurance change.
The mortgage servicers would also be required to make “good-faith efforts” to contact borrowers at risk of foreclosure and give them options to avoid losing their homes. There are also stipulations for improving record-keeping and providing foreclosure counseling to those who need it.
The agency said it will formally propose the rules this summer and finalize them by January 2013.
Nearly 8 million Americans have faced foreclosure since the housing bubble burst in late 2006.
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