What do the mortgage servicing rules provided by the CFPB focus on?

The mortgage servicing rules established by the Consumer Financial Protection Bureau (CFPB) specifically aim to protect struggling consumers who are facing foreclosure. These rules are designed to establish clear and fair communication requirements between mortgage servicers and borrowers. They include provisions that require servicers to provide timely and accurate information to borrowers about their mortgage accounts, especially when a borrower is in danger of foreclosure. The rules also mandate that servicers must evaluate borrowers for loss mitigation options, which can help prevent foreclosure by allowing borrowers to modify their loan terms or pursue alternate repayment plans.

The focus on aiding distressed homeowners relates directly to the broader goal of maintaining stability in the housing market and aiding consumers during challenging financial times rather than simply addressing loan defaults, improving origination processes, or affecting mortgage rates. Each of those other aspects may be important in different contexts, but the primary aim of the mortgage servicing rules is centered on providing assistance and clarity to borrowers in troubling financial situations.