New Help to 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.
Homeowners now the right to receive monthly mortgage statements during and after bankruptcy.
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
Saving your home
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)

Additional note – 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.
Related posts on this same topic:

1. Beware consumers no longer protected – Corday leaving CFPB
2. Payday and Deposit advance loans
3. Stop Payday Loan Debt Traps
4. Student Loans – the latest nightmare

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About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. As a teacher and retired law professor, Diane believes in offering everyone, not just her clients, advice about the Arizona bankruptcy and foreclosure laws. She is also a mentor to hundreds of Arizona attorneys.
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*Important Note from Diane: Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article.  Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

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