A Congressional Call to Strengthen Foreclosure Protections

A Congressional Call to Strengthen Foreclosure Protections

Industry Update
August 6, 2021

Source: DS News

Rep. Maxine Waters, Chairwoman of the House Financial Services Committee, has issued two letters to federal agencies and banking regulators urging them to strengthen foreclosure and mortgage servicing protections for borrowers to provide greater oversight to prevent unnecessary foreclosures during the pandemic.

Rep. Waters’ first letter, written to the Honorable Marcia L. Fudge, Secretary of the U.S. Department of Housing and Urban Development (HUD); the Honorable Thomas J. Vilsack, Secretary from the U.S. Department of Agriculture (USDA); and the Honorable Denis R. McDonough, Secretary of the U.S. Department of Veterans Affairs (VA), calls on federal housing agencies to protect the nation’s homeowners.

“I write to highlight the gap in foreclosure protections beginning on August 1, the day after the federal foreclosure moratorium expired and August 31, when CFPB’s foreclosure protections rule come into effect,” wrote Chairwoman Waters. “The month-long gap in protections leaves communities vulnerable to foreclosure, especially Black and Latinx homeowners who have been disproportionately affected by the pandemic-induced economic downturn. Therefore, it is important for your agencies to take additional steps to prevent unnecessary foreclosures during this critical time.”

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