CFPB ‘warns’ mortgage servicers about foreclosure wave

The Consumer Financial Protection Bureau “warned” mortgage servicers to take all necessary steps to prevent a wave of foreclosures this fall.

Foreclosure Wave: In a compliance bulletin, the CFPB said servicers should dedicate sufficient resources and staff now to prepare for a surge in borrowers needing help when federal emergency mortgage protections expire this summer and fall.

Oversight: The CFPB said it will closely monitor how servicers engage with borrowers and process loss-mitigation applications as it addresses compliance issues.