What will the CFPB’s ramped up enforcement look like?

In today’s HousingWire Daily episode, HousingWire Digital Media Manager Alcynna Lloyd joins HW+ Managing Editor Brena Nath to discuss the hottest topics that came the HousingWire newsroom last week, as well as this month’s magazine issue which focuses on closing. During the episode, the pair discuss the Consumer Financial Protection Bureau’s (CFPB) latest warning to servicers that it’s ramping up enforcement, and discuss what readers can expect from the April magazine issue.

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For some background on the interview, here’s a brief summary of the article:

The CFPB is warning servicers that it is ramping up enforcement and will be specifically watching how servicers manage borrowers coming out of forbearance.

In a Thursday compliance bulletin, the CFPB said it will monitor how servicers work to prevent a wave of foreclosures from occurring this fall. “Unprepared is unacceptable,” the Bureau said. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests and process applications for loss mitigation.

“There is a tidal wave of distressed homeowners who will need help from their mortgage servicers in the coming months. Responsible servicers should be preparing now. There is no time to waste, and no excuse for inaction. No one should be surprised by what is coming,” said CFPB acting Director Dave Uejio.

As of March 29, the Mortgage Bankers Association estimates 2.5 million homeowners are still in some form of forbearance. That number is steadily approaching half of the peak seen in April, 2020, but what was once a wave of exits is now closer to a trickle. It took nearly five months for the national forbearance rate to drop an entire percentage point – down from 6% to below 5% as of last week, as economists point out those who stay in loss mitigation the longest are likely to be in the greatest need.

HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.

HousingWire articles related to this episode:

HousingWire Daily

Hosted by the journalists behind the headlines, HousingWire Daily examines the most compelling mortgage, real estate, and fintech articles reported from the HousingWire newsroom.

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