With the recent housing crisis and recession, many people have been searching for assistance with mortgage payments. There is a government agency in place to help those struggling with a mortgage keep their home. This agency, known as the Consumer Financial Protection Bureau (CFPB), helps in a number of different ways.
Lawful Protection
The CFPB works to alter the stipulations of a mortgage agreement so they favor the lendee, rather than the lender. For example, they recently altered the law so that mortgage servicers are required to help those they provided the mortgage to. By law, they must inform the lendee of all payment options, give advice regarding how to manage the situation, and generally offer information that will allow a person to avoid foreclosure. A person can call their mortgage servicer for this information and they are required to provide it under the new rules set by the CFPB.
Financial Counselor Referral
The CFPB also provides a network of accredited counselors who will be able to assist consumers in avoiding foreclosure. They offer a list of different HUD-approved housing counseling agencies that can hammer out payment plans, negotiate rates with mortgage providers, and refinance an entire mortgage so that it is more manageable. A counselor can also help consumers fill out an application for assistance from lenders. This application is very important because it compels lenders to lower temporarily interest rates or lower monthly payments so they are more manageable, reducing the chance of foreclosure. However, a complete application must be turned in within a specific time frame. A counselor can help make sure that it gets done correctly and quickly.
Free Services
The CFPB provides mortgage assistance at no cost, unlike many mortgage service companies. Rather than risk falling into a scam, consumers can trust the CFPB will provide services at no charge or financial risk.
Complaint Processing and Prosecution
Another service provided by the CFPB is complaint processing. Consumers can submit complaints about mortgage service providers and the CFPB will review them to help the consumer. This allows the CFPB to enforce the guidelines set in place and regulate any illegal lending activity.
The CFPB is dedicated to protecting the rights of consumers and eliminating unfair lending practices.
