Servicers Get CFPB Reprieve
With numerous modifications designed to make its proposal less onerous, the CFPB on Monday issued a final rule providing temporary foreclosure protection without the de facto moratorium that, had the Bureau heeded some on the Hill, would have prolonged nonpayment, possibly precipitating a flood of borrower requests which servicers could not reasonably be expected to handle with justice for all.  FHFA’s like-kind action yesterday also ensures that servicers will not be caught in a vise between the Bureau and the GSEs.  All of these actions are betting that loan-mods are not only better for borrowers, but also better for both communities and investors because very few of the borrowers still in forbearance have true capacity to repay.