CFPB Announces Foreclosure Restriction and Additional Loss Mitigation Requirements


On April 5, the Consumer Financial Protection Bureau (“CFPB”) proposed amendments to Regulation X with the effect of preventing foreclosure on certain residential mortgage loans until January 1, 2022.[1]  With a proposed effective date of August 31, 2021, this action would apply not only to federally backed mortgage loans, but to all mortgage loans secured by a property that is a borrower’s principal residence[2] – including those held in private trusts and on lender balance sheets.