In an ongoing effort to inform consumers as well as lenders on the inner workings of the mortgage market, the Consumer Financial Protection Bureau is this week advising consumers on how to proceed if they find themselves falling behind on mortgage payments.
“There is nothing worse than doing nothing,” the CFPB writes in an advisory to consumers stressing the impact of taking control.
The agency, which began enforcing the Qualified Mortgage rule on Friday and has recently implemented and is working on multiple mortgage rules having to do with servicing and loan origination, points to two avenues through which homeowners can take control of their mortgage situations.
First, the CFPB points to housing counselors as a resource that can help borrowers in need.
“Housing counselors are trained to help you fill out the documents you will need to submit to get help,” the CFPB advises. “They can also walk you through the choices you will face. It’s also very important that you read the notices and information your mortgage servicer sends you.”
Further, the agency stresses government programs such as the Home Affordable Refinance Program and Home Affordable Modification program as additional resources, as well as the role of mortgage servicers as a consumer resource that should be contacted if problems arise.
Under the new rules, mortgage services are required to contact borrowers as soon as a delinquency takes place and inform them of options to avoid foreclosure, the CFPB says.
Written by Elizabeth Ecker