While the Mortgage Bankers Association (MBA) asserts the Consumer Financial Protection Bureau (CFPB) goes beyond Dodd-Frank in its proposed mortgage servicing guidelines by creating compliance barriers, it also calls the proposed exemption for smaller servicers too narrow. HousingWire tells MHPronews consumer groups say the servicing standards do not protect distressed homeowners enough. Three California Reinvestment Coalition, as well as the Housing and Economic Rights Advocates and Law Foundation of Silicon Valley wanted the law amended to prevent dual tracking, wherein a lender is putting together a loss mitigation solution and a foreclosure simultaneously. The California State Legislature passed the Homeowner Bill of Rights this year, which ends “dual track” and gives homeowners a fighting chance at getting a modification before the bank pursues foreclosure,” the advocacy groups said. For more of MBA’s words about the mortgage servicing guidelines, click here.
(Image credits: BloombergBusinessWeek and CFPB)