ARLINGTON, Va.–A new focus by the CFPB on mortgage issuers related to what it said could be a “tidal wave” of foreclosures due to expiring forbearances should not be a significant concern for credit unions, according to one person with NAFCU.
As CUToday.info reported here, the Bureau is warning all servicers to take necessary steps now to prevent a wave of avoidable foreclosures this Fall.
“Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall,” the agency said. “Servicers should dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help.”
The Bureau has since put out for comment proposals aimed at preventing foreclosures, as CUToday.info reports separately today.
But Carrie Hunt, general counsel and EVP with NAFCU, said she believes credit unions have been “looking out for their members” throughout the pandemic and will continue to do as the various mortgage-related forbearance periods expire.
“Credit unions have a good handle on whether their members are paying and whether they are in forbearance,” said Hunt. “The hope is as the economy continues to improve credit unions will watch and provide enough tools for members to get back on track.”