New Help for Homeowners, Heirs or Spouses
Two important sets of CFPB amendments to its RESPA and TILA mortgage servicing rules go into effect April 19, 2018. These amendments expand the rights of those inheriting homes, awarded a home in divorce, or otherwise succeeding in interest to a mortgage loan. The rules also offer an important new right for debtors in bankruptcy to determine if mortgage servicer fees and application of mortgage payments are proper.
Do you need help saving your home? The other set of amendments is just as important, giving homeowners during and after bankruptcy the right to receive monthly mortgage statements. Without these statements, it has been difficult to determine if mortgage servicers were assessing improper fees or misapplying the homeowner’s mortgage payments, particularly during chapter 13 cases.
Successors in Interest Entitled to the Same Rights As Borrowers
The new rules expand the definition of a “borrower” for purposes of RESPA, and “consumer” for purposes of TILA, to include a confirmed successor in interest. 12 C.F.R. § 1024.31 (eff. April 19, 2018). Successor in interest is defined as coextensive with transfers listed in the Garn-St. Germain Act after which a due-on-sale clause may not be exercised.
This list includes transfers related to the borrower’s death or a divorce or separation agreement, transfers to a spouse or children, or to a trust in which the borrower is a beneficiary. 12 U.S.C. § 1701j-3(d)
MUSINGS FROM DIANE:
the Consumer Financial Protection Bureau ‘CFPB’ has been instrumental in holding banks, car lenders, pay day lenders and many other responsible for their unscrupulous actions. Trump and his big business friends are moving to gut the CFPB so as to reduce their power and expose those who do not have a voice (you and me) to the outrageous actions of big business. Remember this next time you are asked to vote.