The Consumer Financial Protection Bureau on Monday moved to beef up the federal eviction moratorium by requiring debt collectors to provide written notice to renters of their rights – and bars debt collectors from misrepresenting tenants’ protection from eviction. The Centers for Disease Control issued the eviction moratorium in an effort to reduce the spread of Covid-19 during the pandemic. Debt collectors who evict tenants could be prosecuted and be exposed to lawsuits by those they evicted, the CFPB said. “With COVID-19 killing hundreds of Americans every day, kicking families out into the street during this pandemic may literally be a death sentence,” CFPB Acting Director Dave Uejio said. “No one should be evicted from their home without understanding their…
With 2.5 million Americans still in mortgage forbearance plans, the Consumer Financial Protection Bureau is proposing rule changes designed to prevent people from losing their homes when the foreclosure bans expire. The CFPB issued a proposal Monday that would: Prohibit lenders from starting foreclosure proceedings until after December 31 to give borrowers time to get caught up.Provide options to lenders to offer streamlined loan modification options to borrowers with Covid-19-related issues.Require lenders to communicate with borrowers in a timely way to ensure they are aware of their options. “The nation has endured more than a year of a deadly pandemic and a punishing economic crisis. We must not lose sight of the dangers so many consumers still face,” CFPB Acting…
Housing and Urban Development Secretary Marcia L. Fudge announced that mortgage insurance on Federal Housing Administration loans will remain the same for the foreseeable future. “Given the current FHA delinquency crisis and our duty to manage risks and the overall health of the fund, we have no near-term plans to change FHA’s mortgage insurance premium pricing,” HUD Secretary Marcia L. Fudge said. “We will continue to rigorously evaluate our strategy and work transparently with Congress. Our number one priority is helping families keep their homes and remain safe as we work toward an equitable recovery.” What is FHA mortgage insurance? Bankrate explains: All FHA loans require the borrower to pay two mortgage insurance premiums: Upfront mortgage insurance premium: 1.75 percent of the loan amount,…
The Consumer Financial Protection Bureau and the Federal Trade Commission on Monday issued a warning to landlords to “stop illegal evictions” during the Covid-19 pandemic. The statement was issued as the Centers for Disease Control and Prevention extended its eviction moratorium, banning landlords from kicking tenants out for being unable to make their rental payments. “Staff at both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law,” CFPB Acting Director Dave Uejio and FTC Acting Chairwoman Rebecca Slaughter said. “Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of…
The US Department of Housing and Urban Development announced $450 million in housing block grants to support affordable housing, as well as another $5 million for Native Hawaiians. The Indian Housing Block Grants will be used to help Tribes carry out affordable housing activities to protect the safety and health of their Tribal members and communities during the Covid-19 pandemic. The list of tribes receiving the grants can be found here. Indian Housing Block Grants pay for housing development, operation and maintenance, modernization of existing housing, housing services to eligible families and individuals, housing management services, crime prevention and safety activities, and model activities that provide creative approaches to solving affordable housing problems in Indian Country. “With the enactment of the…
Housing and Urban Development Secretary touched off a mini political storm last week when she answered a political question in the White House briefing room, raising concerns that she violated the Hatch Act in the process. The Hatch Act prohibits executive branch employees from engaging political activity as part of their government work. They can do political work, but it must be separated from their government jobs. Fudge was in the White House briefing room Thursday with Press Secretary Jen Psaki when she was asked by a reporter about the race to succeed her in Congress. She declined to answer, but was then asked about the Ohio Senate race. Here is how she responded when asked if there were any…
The White House took to Twitter on Thursday to promote the housing-related benefits included in the $1.9 trillion American Rescue Plan. Here’s what they had to say: Across the country, millions of Americans are struggling to keep a roof over their head. Here’s a breakdown of how the American Rescue Plan will help:— The White House (@WhiteHouse) March 18, 2021 The American Rescue Plan provides more than $21.5 billion in emergency rental assistance to help millions of families keep up on their rent and remain in their homes.— The White House (@WhiteHouse) March 18, 2021 The bill includes $10 billion to help homeowners behind on their mortgage and utility payments — helping avoid foreclosures.— The White House (@WhiteHouse) March 18,…
The Department of Housing and Urban Development posted a welcome video from new Secretary Marcia Fudge, who was sworn in Wednesday after being confirmed by the Senate earlier in the day. Here is her video: And here are the remarks: A good home shapes nearly every part of our lives. It’s where we start and end each day. It’s where we raise our families and come together in times of joy. It’s where we find shelter and comfort during times of hardship. The past year has reminded us just how important it is to have a safe and stable place to call home. But, right now-for millions of Americans-that sense of security and peace of mind is out of reach.…
The Senate voted 66-34 on Wednesday to confirm former Rep. Marcia Fudge as the Secretary of Housing and Urban Development, as the nation’s housing market faces major challenges in the coming months with the end of bans on evictions and foreclosures. “I’m honored to serve as the 18th Secretary of Housing and Urban Development,” Fudge said in her welcome remarks. “I am proud to join a group of public servants who work with compassion and determination to change the lives of those in need. And I can’t wait to get started.” Last week, the Consumer Financial Protection Bureau reported that millions of Americans face foreclosure and eviction from their homes once housing pandemic protections come to an end. The CFPB…
Millions of Americans face foreclosure and eviction from their homes once housing pandemic protections come to an end, according to a report released Monday by the Consumer Financial Protection Bureau. The CFPB found that nearly 11 million families are behind on rent or mortgage payments, with 8.8 million behind on rent and 2.1 million behind on their mortgages. That accounts for nearly $90 billion in missed mortgage payments. The report also found: Black and Hispanic families are more than twice as likely to report being behind on housing payments than white families.While mortgage forbearance has dropped foreclosures to historic lows, 1 million homeowners are more than 90 days behind on payments and are likely to experience severe financial hardship when…
