At an event in Atlanta Thursday morning, the Consumer Financial Protection Bureau unveiled several new rules for mortgage servicers that are intended to help troubled borrowers “get a fair process to avoid foreclosure, told about their options, and given time to be considered for loan modifications.”
Mortgage servicers collect payments from mortgage borrowers on behalf of loan owners and typically handle customer service, escrow accounts, collections, loan modifications, and foreclosures. For years, even before the financial crisis, the industry has “experienced problems with bad practices and sloppy recordkeeping,” a CFPB statement said.
