Removing Barriers Blog

Bureau Proposes a Foreclosure Moratorium Until 2022
Posted April 07, 2021 by CUNA Advocacy

The Bureau published a proposed rule that would make significant amendments to Regulation X in connection with the ongoing COVID-19 pandemic. First, the proposal would institute a foreclosure moratorium preventing any mortgage servicer from referring a delinquent mortgage on a borrower’s primary residence for foreclosure until after December 31, 2021. Second, the proposal would allow credit unions to offer certain streamlined modifications based on an incomplete loss mitigation application, such as the streamlined modifications currently permitted by the GSEs. Finally, the proposal makes changes to the live contact and the due diligence provisions intended to help borrowers rolling off of forbearance get information about their options. The Bureau is hoping the rule would take effect on or before August 31, 2021. 

It is important to note that while the proposal has not been published in the Federal Register yet, it does have a deadline for comment; May 10, 2021. CUNA will be filing comments and if you have thoughts to share, please reach out to Elizabeth LaBerge at elaberge@cuna.coop