Ignore Borrower Preference In Loss Mitigation? CFPB Says Yes

7 minute read | September.29.2017

Mortgage servicers should not listen to borrowers when it comes to loss mitigation. At least, that’s what the Consumer Financial Protection Bureau says. More specifically, servicers should disregard when a borrower tells the servicer they do not want to keep their home. Officially, this has been the position since the bureau promulgated its final servicing rule in 2013 (effective January 2014), and despite feedback of borrower confusion and servicer frustration, the bureau reiterated its stance in recent amendments to those rules that take effect on Oct. 19, 2017.

Originally published in Law360; reprinted with permission.