CFPB finalizing rule to extend limits on foreclosures as economy recovers

The U.S. consumer watchdog on Monday said it was finalizing a rule that would restrict mortgage servicers from foreclosing on borrowers behind on their mortgage payments, throwing a lifeline to hundreds of thousands of homeowners struggling because of the coronavirus pandemic.

The Consumer Financial Protection Bureau (CFPB) in April proposed, among other measures, a new review process that would generally prohibit mortgage servicers from starting a foreclosure until after Dec. 31. It aims to help around 900,000 homeowners due to exit covid-19 mortgage holiday or “forbearance” programs in coming months.