Published: October 2024

Advocates comment on CFPB’s proposals to streamline loss mitigation procedures for struggling mortgage borrowers

Consumer and housing advocates submitted comments to the Consumer Financial Protection Bureau commending the agency’s efforts to make streamlined loss mitigation reviews for struggling mortgage borrowers a permanent option, while also offering suggestions.

In response to the Consumer Financial Protection Bureau’s (CFPB) Notice of Proposed Rulemaking under the Real Estate Settlement Procedures Act (RESPA), Regulation X, consumer and housing advocates submitted comments commending the agency’s efforts to make streamlined loss mitigation reviews for struggling mortgage borrowers a permanent option, while also offering suggestions for refining the regulatory text to better protect borrowers. These recommendations include clarifying what types of communications from borrowers constitute a request for loss mitigation assistance; requiring mortgage servicers to exercise reasonable diligence in the loss mitigation review process—namely, an obligation to move the review process along; lengthening any minimum response periods to at least 21 days, to account for mailing delays; requiring servicers to treat a request for assistance from a potential successor in interest as a request of assistance that triggers dual tracking protections; and ensuring that borrowers with zombie second mortgages have a reasonable opportunity to apply for loss mitigation and avoid unnecessary foreclosure. These suggested changes would contribute to the overall effort to keep families in their homes.

Lead Organization

National Consumer Law Center and National Housing Law Project

More Information

Read the letter here.

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