ARTICLE

Feds Warn Mortgage Firms: 'Tidal Wave Of Distress' Coming In 2nd Half Of Year

News Image By Tyler Durden/Activist Post April 05, 2021
Share this article:

The Consumer Financial Protection Bureau (CFPB) warned mortgage firms Thursday "to take all necessary steps now to prevent a wave of avoidable foreclosures this fall." 

As of March 30, approximately 2.54 million homeowners remain in forbearance or about 4.8% of all mortgages, according to the latest data from Black Knight's McDash Flash Forbearance Tracker.

CFPB said mortgage firms should "dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help." 


To avoid what the agency called "avoidable foreclosures" when the forbearance relief lapses, mortgage servicers should begin contacting affected homeowners now to guide them on ways they can modify their loans.

"There is a tidal wave of distressed homeowners who will need help from their mortgage servicers in the coming months," said CFPB Acting Director Dave Uejio. He said,

"There is no time to waste and no excuse for inaction. No one should be surprised by what is coming." 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided a safety net for borrowers with federally-backed mortgages who could access forbearance programs. 


With millions of borrowers in the program set to lapse in the second half of the year, unavoidable foreclosure will occur despite the government trying everything under the sun to keep people in their homes.

"Our first priority is ensuring struggling families get the assistance they need. Servicers who put struggling families first have nothing to fear from our oversight, but we will hold accountable those who cause harm to homeowners and families," Uejio said.

With the CFPB focused on preventing avoidable foreclosures, the government's forbearance programs ends in September, which could result in the quick unraveling of the social fabric for many households who may find themselves homeless.

Originally published at Activist Post - reposted with permission.




Other News

July 09, 2025From Japan To The U.S - Earthquake Fault Lines Are Awakening

Is there a possibility that a cataclysmic eruption of Mt. Rainier could occur in the not too distant future? On Tuesday morning, Mt. Rain...

July 09, 2025When The Left Wants Blood: The Quiet Slide Toward Political Violence

Democratic lawmakers are hearing increasingly violent rhetoric from their constituents-calls to "break the rules," "fight dirty," and stop...

July 09, 2025The Digital Trap: Europe's Quiet March Toward Total Control

Imagine a world where every transaction you make, every website you visit, every thought you dare to express online is silently recorded, ...

July 09, 2025Shepherds Without Scripture: What Do Today’s Pastors Really Believe?

One in four Mainline clergy doubt the existence of God. These aren't fringe bloggers or deconstructing TikTok influencers. These are the m...

July 07, 2025Hijacking Creation: Scientists May Only Be Years Away From Lab-Made Children

In-vitro gametogenesis - the creation of human sperm and eggs from skin or blood cells--is now just years away. Scientists across Japan, C...

July 07, 2025Death To The IDF? The Disturbing New Normal On The Progressive Left

Once reliably pro-Israel, the Democratic Party has undergone a dramatic reversal on the Israeli-Palestinian conflict-and no demographic re...

July 07, 2025Access Denied: How Age Rules Could Reshape The Internet For Everyone

If identity becomes the new key to the internet, then the next great digital debate won't be about content moderation-it will be about acc...

Get Breaking News