InfoBytes Blog
CFPB reminds servicers to use HAF funds to prevent foreclosure
On March 14, the CFPB published a blog post strongly encouraging mortgage servicers to participate in the Homeowner Assistance Fund (HAF) to help borrowers avoid foreclosure and resolve delinquencies. While participation is voluntary, the Bureau reminded servicers that it remains focused on preventing avoidable foreclosures, and HAF funds can only help “if mortgage servicers work with state housing finance agencies and HUD-approved housing counselors to help borrowers” complete the process. HAF funds may allow borrowers to pay down the amount owed on a mortgage and help them enter loan modifications with lower payments. The Bureau also encouraged servicers to offer HAF program training to customer service representatives to ensure borrowers are provided accurate information about the loss mitigation process. Additionally, servicers should maintain policies and procedures that are designed to properly evaluate loss mitigation applications and should review existing policies and procedures to ensure borrowers are not improperly referred to foreclosure, especially in cases where a borrower’s HAF application is pending, or a borrower is awaiting HAF funds. The Bureau reminded servicers that it will continue to closely monitor servicer conduct and review mortgage servicing complaints to ensure compliance with all applicable federal consumer financial laws.