While there are those in the mortgage industry who feel the Consumer Financial Protection Bureau’s new servicer rule goes too far, Rep. Maxine Waters, D-Calif., feels it does not go far enough.
The ranking member of the House Financial Services Committee said in a statement that while the rule is a “strong first step,” more needs to be done to protect “borrowers from wrongful foreclosure. First, servicers must be required to engage in loss mitigation.
“Also, more progress should be made in addressing the problem of “dual tracking,” by which servicers consider borrowers for loan modifications while simultaneously moving them towards foreclosure. Furthermore, homeowners must be guaranteed a more robust right to appeal when they are denied loan modifications.”