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Good Morning:

I hope this newsletter finds you and your family doing well. In this newsletter, I want to provide an update on where things stand with the federal foreclosure ban.

It is estimated that approximately 10 million Americans are currently behind on their mortgage payments. While there is no longer a state foreclosure ban, the Biden administration has extended the federal ban on federal-backed mortgages to June 30, 2021. Federal-backed mortgages will typically be mortgages backed by Fannie Mae, Freddie Mac, the Veterans Administration (“VA”), or the Federal Housing Administration (“FHA”). This means that mortgage companies cannot file foreclosure cases on federally-backed mortgages until July 1, 2021 at the earliest. In our law practice, we have noticed that most of the mortgage companies are following the federal ban even if the mortgage is not federally-backed.

Even more significant, though, is the proposed rule the federal Consumer Financial Protection Bureau (“CFPB”) has announced that would both expand the scope of the federal foreclosure ban and further extend the ban through the end of this year. The CFPB is seeking public comment on the rule through May 11, 2021 and then will determine if the proposed rule becomes final. The proposed rule, as currently drafted, would broaden the scope of the federal foreclosure ban to include all mortgages secured by the borrower’s principal residence.

This would include private mortgages, which comprise approximately 30 percent of our country’s residential mortgage market. The proposed rule would also streamline the underwriting process for mortgage modifications and would provide additional protections to our consumers. You can read the fact sheet released by the CFPB here.

The CFPB has also created a single website containing a ton of helpful information for our renters and homeowners who currently need assistance with their rent or mortgage. You can review this site by clicking here.

I hope this information is helpful to you and your family. Have a safe, restful Sunday!

Best Regards,

Ryan C. Torrens

Consumer litigation attorney

 

www.TorrensLawGroup.com

Facebook:RyanforFL

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Disclaimer: The information provided in this email does not, and is not intended to, constitute legal advice. Ryan Torrens is only licensed to practice law in the State of Florida. Instead, all information, content, and materials available in this email is for general informational purposes only.