Mortgage Servicing & Foreclosures Archives

Letter urging Government Sponsored Enterprises (GSEs) and the Federal Housing Finance Agency (FHFA) to reform their note sale programs to ensure that borrowers avoid unnecessary foreclosure

March 10, 2023

The GSEs have sold around 700,000 loans in non-performing loan (NPL) and reperforming loan (RPL) pools since 2015. During the height of the COVID pandemic, Fannie Mae sold off 99,100 reperforming loans, the highest total for any year. When their loans are sold, the homeowners lose access to streamlined foreclosure alternatives created to help homeowners…

Comments to HUD Regarding Mortgagee Letter 2023-03

March 7, 2023

On behalf of our low-income clients, we applaud the servicing policy updates that HUD provided in Mortgagee Letter 2023-03. By expanding access to the waterfall established in response to the COVID-19 pandemic, FHA is minimizing barriers to all borrowers seeking help after a financial crisis. Increasing the partial claim cap to 30% will more effectively…

Advocates Welcome Mandatory Collection of Language Preference Data by Fannie Mae and Freddie Mac

March 1, 2023

Required use of the Supplementary Consumer Information Form (SCIF) begins on March 1 WASHINGTON – Americans for Financial Reform, the Connecticut Fair Housing Center, Consumer Action, National Coalition for Asian Pacific American Community Development (National CAPACD), the National Consumer Law Center, the National Fair Housing Alliance, National Housing Resource Center, and UnidosUS celebrate today’s decision…

Home Equity Lines of Credit Gaps in Coverage & Exemptions from Regulations

February 22, 2023

Consumers with HELOCs have substantially fewer and weaker protections than homeowners with other types of mortgages: The federal Flood Disaster Protection Act does not require servicers to escrow for flood insurance for HELOCs. The Electronic Funds Transfer Act does not apply to HELOCs. The minimum number of loans a lender must originate before becoming subject…

Coalition Comments to the Task Force on New Americans on Expanding Language Access Within the Financial Services Sector

February 7, 2023

Comments submitted on behalf of civil rights and consumer advocacy organizations regarding the request for public input issued by the Financial Access and Education Subcommittee of the White House Task Force on New Americans. The consumer groups urge the Financial Access and Education Subcommittee to incorporate policies that would explicitly expand language access within the…

Joint Trade Letter to FHA Regarding Borrower Request for Review of Appraisal Results

February 2, 2023

On behalf of the industries, clients, and communities we represent, we write to comment onHUD’s proposed process for Mortgagees when a Borrower requests a review of the appraisalresults associated with their application for an FHA-insured mortgage. This joint industryconsumer comment sets out essential principles we see as vital for the successful developmentand deployment of a…