\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Kerry Smith<\/div><\/div>\n

The housing industry had an artificial pause button pushed during the pandemic, thanks to eviction moratoriums, forbearance programs, etc. As those draw to a close, CFPB proposed rules to maintain stability, and NAR commented with a suggestion that short sales might be the way to go.<\/span><\/span><\/p>\n<\/div>\n

WASHINGTON \u2013 As foreclosure moratoriums and forbearance programs begin to close, what\u2019s the best way to keep the housing market stable, organized and productive without creating other problems, such as homelessness, frustration and an onslaught of evictions?<\/span><\/span><\/p>\n

The U.S. Consumer Protection Bureau (CFPB) proposed rules to organize the transition, and the National Association of Realtors\u00ae (NAR) recently commented on those rules. CFPB posted its proposals online as \u201cProtections for Borrowers Affected by the COVID-19 Emergency under the Real Estate Settlement Procedures Act, Regulation X<\/a>\u201d.<\/span><\/span><\/p>\n

Outside CFPB\u2019s proposals, NAR also co-sponsored a study, Protecting Homeownership From the Impact of COVID-19<\/a>. It says the purpose of the study is a desire to \u201cidentify best practices learned from the Great Recession to blunt the pandemic\u2019s impact on homeownership.\u201d<\/span><\/span><\/p>\n

In a letter sent to CFPB signed by NAR President Charlie Oppler, the association made a number of comments on CFPB\u2019s proposals, including:<\/span><\/span><\/p>\n

The nation needs an orderly transition out of forbearance<\/span><\/span><\/h3>\n
Oppler\u2019s letters says that Realtors \u201cgreatly appreciate the efforts the CFPB has taken to consolidate information about loss mitigation options from all federal channels in a single location,\u201d and it \u201csupports the CFPB\u2019s efforts \u2026 as states and localities ease and remove restrictions related to the spread of COVID-19.\u201d<\/span><\/span><\/p>\n
NAR agrees with a CFPB proposal to give at-risk homeowners a list of all their options, including both a home sale and a short sale. It will allow \u201cdistressed owners who have exhausted modification alternatives the means to exit homeownership in a manner that will minimize the impact on their credit score, equity, and time to return to homeownership.\u201d<\/span><\/span><\/p>\n
NAR also recommends a closer focus on short sales, saying they generally have a \u201csmaller impact on the distressed owner and cost the lender less than a foreclosure.\u201d<\/span><\/span><\/p>\n
Time is of the essence<\/span><\/span><\/h3>\n
NAR suggests that the frustrations homeowners experienced with short sales during the Great Recession should not be repeated, saying \u201cThis all too often \u2026 would result in the potential homebuyer canceling the purchase contract, the property ending in foreclosure, and the distressed household suffering long-term harm.\u201d<\/span><\/span><\/p>\n
In the best cases, a short sale can take many months. NAR suggest that CFPB establish a \u201ctimeframe for servicers and investors to respond to buyers\u2019 offers\u201d as a way to streamline the short-sale process. It will \u201cbenefit the seller, the buyer and the community.\u201d<\/span><\/span><\/p>\n
Change foreclosure calculations for credit scores<\/span><\/span><\/h3>\n
A foreclosure or short sale hurts a homeowner\u2019s credit score and makes it harder to get a mortgage in the future, but when does the impact from one of those events get recorded in a credit score?<\/span><\/span><\/p>\n
NAR says the \u201cfreeze-out period\u201d recorded on credit scores currently begins when the foreclosure process is completed \u2013 but many \u201clenders recognize the start of this period as when the lender or investor sells the distressed property, rather than when the distressed owner ceases to have title to the property.\u201d<\/span><\/span><\/p>\n
NAR calls the time between losing title and an eventual resale as a \u201climbo period.\u201d <\/span><\/span><\/p>\n
\u201cWhile the CFPB does not have authority over practices of (Fannie Mae or Freddie Mac) or state foreclosure laws, NAR urges CFPB to use its ability to investigate the issue and to clarify for lenders when a consumer has satisfied their obligation under the foreclosure.\u201d<\/span><\/span><\/p>\n
NAR\u2019s conclusion<\/span><\/span><\/h3>\n
NAR calls it \u201cimperative that the CFPB and industry continue to work toward a clear, robust and holistic approach to supporting distressed owners making the transition out of forbearance during this crisis,\u201d and urges CFPB to include its suggestions in its final rules.<\/span><\/span><\/p>\n
\u00a9 2021 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Kerry Smith The housing industry had an artificial pause button pushed during the pandemic, thanks to eviction moratoriums, forbearance programs, etc. As those draw to a close, CFPB proposed rules to maintain stability, and NAR commented with a suggestion that short sales might be the way to go. WASHINGTON \u2013 As foreclosure moratoriums and forbearance programs begin to close, what\u2019s the best way to keep the housing market stable, organized and productive without creating other problems, such as homelessness, frustration and an onslaught of evictions? The U.S. Consumer Protection Bureau (CFPB) proposed rules to organize the transition, and the National Association of Realtors\u00ae (NAR) recently commented on those rules. CFPB posted its proposals online as \u201cProtections for Borrowers Affected by the COVID-19 Emergency under the Real Estate Settlement Procedures Act, Regulation X\u201d. Outside CFPB\u2019s proposals, NAR also co-sponsored a study, Protecting Homeownership From the Impact of COVID-19. It says the purpose of the study is a desire to \u201cidentify best practices learned from the Great Recession to blunt the pandemic\u2019s impact on homeownership.\u201d In a letter sent to CFPB signed by NAR President Charlie Oppler, the association made a number of comments on CFPB\u2019s proposals, including: The nation needs an orderly transition out of forbearance Oppler\u2019s letters says that Realtors \u201cgreatly appreciate the efforts the CFPB has taken to consolidate information about loss mitigation options from all federal channels in a single location,\u201d and it \u201csupports the CFPB\u2019s efforts \u2026 as states and localities ease and remove restrictions related to the spread of COVID-19.\u201d NAR agrees with a CFPB proposal to give at-risk homeowners a list of all their options, including both a home sale and a short sale. It will allow \u201cdistressed owners who have exhausted modification alternatives the means to exit homeownership in a manner that will minimize the impact on their credit score, equity, and time to return to homeownership.\u201d NAR also recommends a closer focus on short sales, saying they generally have a \u201csmaller impact on the distressed owner and cost the lender less than a foreclosure.\u201d Time is of the essence NAR suggests that the frustrations homeowners experienced with short sales during the Great Recession should not be repeated, saying \u201cThis all too often \u2026 would result in the potential homebuyer canceling the purchase contract, the property ending in foreclosure, and the distressed household suffering long-term harm.\u201d In the best cases, a short sale can take many months. NAR suggest that CFPB establish a \u201ctimeframe for servicers and investors to respond to buyers\u2019 offers\u201d as a way to streamline the short-sale process. It will \u201cbenefit the seller, the buyer and the community.\u201d Change foreclosure calculations for credit scores A foreclosure or short sale hurts a homeowner\u2019s credit score and makes it harder to get a mortgage in the future, but when does the impact from one of those events get recorded in a credit score? NAR says the \u201cfreeze-out period\u201d recorded on credit scores currently begins when the foreclosure process is completed \u2013 but many \u201clenders recognize the start of this period as when the lender or investor sells the distressed property, rather than when the distressed owner ceases to have title to the property.\u201d NAR calls the time between losing title and an eventual resale as a \u201climbo period.\u201d \u201cWhile the CFPB does not have authority over practices of (Fannie Mae or Freddie Mac) or state foreclosure laws, NAR urges CFPB to use its ability to investigate the issue and to clarify for lenders when a consumer has satisfied their obligation under the foreclosure.\u201d NAR\u2019s conclusion NAR calls it \u201cimperative that the CFPB and industry continue to work toward a clear, robust and holistic approach to supporting distressed owners making the transition out of forbearance during this crisis,\u201d and urges CFPB to include its suggestions in its final rules. \u00a9 2021 Florida Realtors\u00ae Go to Source Author: kerrys<\/p>\n","protected":false},"author":4,"featured_media":5089,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/5098"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=5098"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/5098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/5089"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=5098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=5098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=5098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}