CFPB tells mortgage servicers to start ramping up now
The Consumer Financial Protection Bureau reminded mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall — in what can best be described as a warning.
“The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation,” the regulator said in a statement. “The CFPB will consider a servicer’s overall effectiveness in helping consumers when using its discretion to address compliance issues that arise.”
The CFPB said it will expect servicers to comply with foreclosure restrictions in Regulation X and other federal and state restrictions in order to ensure that all homeowners have an opportunity to save their homes before foreclosure is initiated.
“Our first priority is ensuring struggling families get the assistance they need. Servicers who put struggling families first have nothing to fear from our oversight, but we will hold accountable those who cause harm to homeowners and families,” said CFPB Acting Director Dave Uejio.
As of January 2021, approximately 2.7 million borrowers remained in federally-assisted programs, with 2.1 million borrowers in forbearance and at least 90 days delinquent on their mortgage payments. Another 242,000 mortgages not in forbearance programs were at least 90 days delinquent.
Industry data suggest that nearly 1.7 million borrowers will exit forbearance programs in September and the following months, with many of them a year or more behind on their mortgage payments.
Mortgage servicers will need ramped-up capacity to reach out and respond to a large number of homeowners likely to need loss mitigation assistance.
“To meet this surge, servicers will need to plan now,” the CFPB said.
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Millennials take to TikTok for mortgage advice
Millionaires have consistently repeated the message that millennials cutting out that one “indulgence” can be the salve for our financial woes.
Recently, personal finance expert Suze Orman said that the coffee people buy is the equivalent of “peeing $1 million down the drain,” while real estate mogul Tim Gurner famously said that millennials would need to stop buying avocado toast and coffee if they wanted to afford a home.
This has lead to a backlash among millennials that discretionary purchases prevent homeownership. As it turns out, millennials are now buying up homes, getting into piles of debt liek the rest of us, but without sacrificing their lattes, or are they?
Enter the middle-aged millennial: Homeowner, debt-burdened and turning 40, according to CNBC.
“It’s 2021, and Jang-Busby, 34, is a pretty typical millennial: a home-owning family man who’s paying down six-figure student-loan debt and is looking to invest more in his retirement account,” writers CNBC. “And he can’t remember the last time he bought a latte.”
So where do millennials like Jang-Busby get their financial advice if not from the likes of Orman and Turner?
The answer is via quick video social service TikTok.
According to CNN, TikTok is leading the way in enabling a younger, more diverse group of people to both provide andgain access to this education.
For example, check out this TikTok (220K+ views) that debunks the $5 latte = no mortgage argument, from Tori Dunlap, the 26-year-old founder of Her First $100K, a money and career website for millennials.
TikTok, Dunlap said, is leading the way in enabling a younger, more diverse group of people to both provide and gain access to this education.
Why is it such a draw?
“Women, people of color and young investors are traditionally underserved segments of the investing public, so it's natural for them to turn to non-traditional sources of financial advice,” said Lisa Kramer, professor of finance at the University of Toronto in the CNN article. “If a TikTok video encourages someone to start planning and investing for the future, that's a win.”
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SHARE HOPE: Property developer gifts homeless family their own home
—-> Ed NOTE: What follows is a harrowing tale of tragedy, struggle, true grit, and, at the end, a stranger who SHARED HOPE with someone much less fortunate; an example for us all to follow.
After the COVID-19 pandemic became a reality for North Texans in the spring of 2020, Alma Sepulvida, a North-Texas based house cleaner, started losing contracts one by one.
The 58-year-old Mexican immigrant couldn’t pay rent for several consecutive months and, by December, her landlord had ordered her out of her home of 11 years.
Her sister offered her Irving residence as a place to stay, but her three youngest kids didn’t want to change schools. So she took the only housing she could find on her budget: Two sheds.
No water. No gas. No electricity. The family went to a nearby gas station to use the toilet facilities.
Over time, word of the Sepulvida family’s plight began to spread, with the community helping out when and where they could. But tragedy seemed to stalk the family and they keep slipping further and further behind.
That all changed when Alma got a call from a stranger who didn’t want to reveal their identity. One day, he took Sepulvida to a home he had been developing on McGuire Street in Azle and asked her if she was interested. Stunned, she gave an emphatic yes.
“He did the closing and then gave me the keys to the house,” Sepulvida said.
Today, they’re still in the process of moving in, slowly putting items into drawers and cabinets. There’s a lot the family loves about the home — its separate bedrooms, two bathrooms and working electricity, for starters. They like the stove where they can cook dishes instead of relying on microwaveable meals.
But perhaps most of all, the family LOVES knowing they’re not going to have to pack themselves up and leave any time soon. They are home.
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