The release of the new tools come on the heels of the enactment of the CFPB's new rules, which are intended to provide further protection for homeowners. The resources include sample letters consumers can send to their mortgage servicers under a broad range of situations, including:
Mortgage servicing errors. The entities that service home mortgages often make alarming mistakes, like ignoring payments, adding unnecessary fees, and even assigning payments to the wrong account. To help homeowners who are the victims of these errors, the CFPB has issued a sample letter that includes the relevant information consumers should give to mortgage services when challenging a mistake.
Information requests. Even in the absence of outright fraud by the mortgage servicer, consumers may have no idea who is in charge of their home loan. This often happens when mortgages are bought and sold several times by shadowy financial institutions. If you would like more information about your home loan, the CFPB has also created a sample information request letter.
Foreclosure alternatives. If you are facing the potential of home foreclosure, and you contact your mortgage servicer, it is obligated to tell you how you can avoid losing your home. The new CFPB rules require mortgage servicers to be more candid with homeowners.
Indeed, the agency backed up this promise by creating new rules that require mortgage lenders to make sure borrowers can afford their mortgages before making the offer. In addition, mortgage lenders must provide more aid to Illinois homeowners facing foreclosure.