| Entities | |
| Topics and Issues | Forbearance (1) |
In September 2022, the CFPB issued a press release announcing an RFI on
ways to improve mortgage refinances for homeowners who would benefit from refinancing, especially for borrowers with smaller loan balances. The agency also seeks public input on ways to support automatic short-term and long-term loss mitigation assistance for homeowners who experience financial disruptions. The CFPB will use this information as it considers steps to support household financial stability and address refinance market gaps. Today’s initiative is part of a broader CFPB effort to promote competition and innovation in consumer finance markets.
There is a small credit reporting component. One of the questions to which the Bureau seeks responses is question 6 under forbearances and other loss mitigation. Here, the Bureau asks “[w]hat changes, if any, should be considered relating to the impact that forbearances and other short-term loss mitigation solutions would have on a consumer’s credit reporting?” On a call I had today with Bureau staff, unrelated to this RFI, staff felt that we live in a world where forbearance will become ever more common. In this world, the Bureau needs to ensure that borrowers are protected in their credit reporting and that different borrowers in the same situations are treated the same.