New mortgage rules adopted by consumer financial protection bureau prohibit mortgage service companies from using the often-used excuse that they lost your loan modification/short sale paperwork, as they did during the housing crisis. The new rules prohibit lenders from offering risky features like negative amortization and interest only payments. The lenders can no longer initiate a foreclosure when they are working with a homeowner who has submitted a complete loan modification or short sale application (dual tracking). This seems like a no-brainer, but now lenders have to make a "good-faith, reasonable" effort to make sure that the borrower can repay their loan.
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