Published: December 2022

CFPB should solidify access to streamlined loss mitigation options for homeowners

In a letter to the CFPB, advocates urged the agency to take steps to ensure homeowners have access to streamlined loss mitigation options to prevent foreclosures.

Nearly two dozen advocacy organizations, including Consumer Action, wrote to the Consumer Financial Protection Bureau (CFPB) urging the agency to address certain policies that would reduce unnecessary foreclosures, stabilize neighborhoods, and reduce the racial wealth gap. Specifically, the groups urged the CFPB to update the mortgage servicing regulations in Regulation X to explicitly permit servicers to offer streamlined loss mitigation options; address the need for streamlined loss mitigation options in areas impacted by natural disasters; publicly reaffirm that the existing Regulation X provisions allow for streamlined offers to borrowers who have not experienced a COVID-related hardship (in addition to those who have); and allow for increased access to streamlined refinancing products, as long as consumer protections are in place to ensure that the refinancing benefits the borrower and fair lending laws are followed. 

Lead Organization

National Consumer Law Center

More Information

Read the letter here.

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