CFPB Launches Foreclosure Prevention Campaign, Includes HECMs

With the launch of a new foreclosure prevention campaign, the Consumer Financial Protection Bureau (CFPB) continues to come into its own as it takes on consumer-related responsibilities.

The campaign webpage offers step-by-step guidance to homeowners in danger of foreclosure, directing them to counseling agencies approved by the Department of Housing and Urban Development (HUD).

Step Two involves calling the CFPB for further mortgage help, with an alternative of using HUD’s online list of foreclosure prevention resources. Those in need of reverse mortgage counseling can call the HOPE Hotline to get connected with a Home Equity Conversion Mortgage (HECM) counselor who can assist them with a range of issues about their loan.

The CFPB also advocates vigilance for foreclosure scams and advises those who believe they may be the victim of a scam to call. The CFPB’s actions in regards to foreclosure scams is especially relevant to seniors, as older Americans often fall prey to foreclosure rescue scams. As of July 2011, 41% of these scams were targeted at those aged 51 and older.

The bureau gained authority from Dodd-Frank on July 21, and since then has been active in revamping mortgage disclosure forms; it released the third round of drafts earlier this month.

A Senate hearing to confirm the nomination of Richard Cordray as CFPB director was postponed until Sept. 6. The bureau is currently under Special Advisor Raj Date’s leadership.

The foreclosure prevention campaign can be viewed here.

Written by Alyssa Gerace

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