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CFPB Adds Safeguards for Mortgage Borrowers Exiting Covid Relief

June 28, 2021, 7:51 PM

Homeowners who entered into mortgage forbearance agreements during the Covid-19 pandemic will have extra protections under a rule the CFPB says will prevent a wave of foreclosures next year.

The Consumer Financial Protection Bureau on Monday completed temporary rules requiring banks and other mortgage servicers to take additional steps before referring a homeowner who can’t make payments for foreclosure.

Those safeguards will help bring about “a measured return to foreclosures” when nearly 1 million forbearance agreements come to an end this fall, CFPB acting Director Dave Uejio said on a call with reporters. The CARES Act and other federal programs ...