Archive

Go to:

January 2018
SMTWTFS
123456
78910111213
14151617181920
21222324252627
28293031
< Dec Feb >
Leaguer Email Subscription

You are not currently subscribed. Click Subscribe below to receive the Leaguer email.

CFPB Clarifies Mortgage Lending Rules to Assist Surviving Family Members
Wednesday, July 9, 2014 6:30 AM

Yesterday, the Consumer Financial Protection Bureau issued an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay rule. This clarification will help surviving family members who acquire title to a property to take over their loved one’s mortgage, and to be considered for a loan workout, if necessary, to keep their home.

“Losing a loved one should not mean also losing your home. Today’s interpretive rule makes it clear that when family members inherit property, they can take over the mortgage without jumping through unnecessary hoops,” said CFPB Director Richard Cordray. “This gives heirs an opportunity to work with the lender to pay off the loan or seek a loan modification.”

The interpretive rule is available on the CFPB’s website.