CFPB and DOJ Reinforce Federal Housing Protections for the Military Community

The Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) issued joint letters, restating the federal housing protections afforded to military servicemembers during the COVID-19 pandemic. While some protections have been in place for decades, others reflect pandemic-era relief from landlords and mortgage companies alike.

One of the letters addresses the handling of servicemembers’ and veterans’ loan accounts after entering a COVID-19 hardship forbearance. CFPB received several complaints, stating that mortgage servicers are (1) reporting accounts to credit reporting agencies as delinquent despite the forbearance, (2) sending incorrect or confusing communications, and (3) improperly requiring lump sum payments for reinstatement.