Bureau bans many foreclosures through 2022

​​​​​​​WASHINGTON – The Consumer Financial Protection Bureau has tightened rules on foreclosures in an effort to prevent mass foreclosures coming out of the COVID-19 pandemic. 

The rule, which will become effective Aug. 31, 2021, bans foreclosures on residential mortgages—whether the mortgage is federally backed or not—until 2022 unless the company collecting mortgage payments does a full review of the h​omeowner’s situation and what modification options could help.

The ban, however, will not include tax foreclosures, homeowners association-initiated foreclosures, or hard money lender-initiated foreclosures. It will also not include homes that were delinquent for more than 120 days prior to March 1, 2020.​

The rule takes effect a month after the Centers for Disease Control and Prevention’s national eviction ban expires on July 31. Last month, the Federal Housing Finance Agency ​extended the foreclosure and eviction moratoria for Enterprise-backed mortgages through ​​the end of this month. 

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Source: Houston Chronicle

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