Is this Unconstitutional? Are they kicking the can down the road?

[Joseph King]

In an article by Brad Beckett: Director of Education & Outreach, National Real Estate Investors Association, The CFPB wants to prevent Foreclosure until the end of the year. 

A new rule proposed by the Consumer Financial Protection Bureau (CFPB) seeks to prevent a wave of foreclosures as some pandemic protections for homeowners are set to expire. According to CNBC, the rule, which would apply to all mortgages federal & private, will prevent mortgage servicers from initiating a foreclosure against delinquent borrowers through December 31, 2021. The CFPB says 1.7 million borrowers could be at risk of foreclosure when the forbearance program ends in September and this number is higher than anything mortgage servicers have ever seen. The proposed rule will still need final approval.

Here is a quote from Charles Tassell COO of National REIA.
“CFPB’s approach to expediting and simplifying the recasting of loans for those in forbearance is not only a good move, it will be a critical move in helping to stabilize the housing industry, community housing values, and the short and long-term benefit of service providers as well as individual homeowners. In short, this is a win all around for those who have felt the brunt of the Covid-19 pandemic’s economic fallout.” Said Charles Tassell, COO of National REIA.

In my opinion, they left out how it benefits small lien holders and retirements invested in unsecuritized mortgages.  Regardless of when it happens, there is going to be a lot of unhappy lien holders looking that want to take back control of their business.

What do you think?