CFPB Encourages Servicer Participation in Federal Homeowner Assistance Program

In a new blog post this week, the CFPB said it “strongly encourages” servers to participate in programs related to the Homeowner Assistance Fund. The HAF is a federal program that provides money to states, tribes, and territories to assist homeowners with housing-related costs, and participation in HAF programs is voluntary.

As part of its ongoing monitoring of servicers, “CFPB will continue its heightened review of mortgage servicing complaints, including in particular complaints about challenges working with servicers to use HAF funds,” the blog post noted. “The CFPB encourages servicers to provide borrowers with sufficient time to move through the HAF application process prior to proceeding with foreclosure. Foreclosing on a homeowner while a HAF application is pending undercuts the congressional purpose in allocating this money, increases avoidable foreclosures, and will merit increased scrutiny.”