NCLC Seeks Signers Urging Foreclosure Pause When HAF Applied For

NCLC seeking non-profit organizations to sign two letters (one to the CFPB and one to FHFA, FHA, VA, and USDA) urging the agencies to require servicers to pause foreclosure activity for at least 60 days after being notified that a borrower has applied for HAF assistance and meets conditional program eligibility. We ask organizations to sign both letters, and the deadline to sign the letter is C.O.B. Wednesday, January 19, 2022.

Here are the links to the CFPB letter and the FHFA/FHA/VA/USDA letter.

These protections are especially crucial at this time because federal assistance intended to help borrowers bring delinquent mortgages current will often be imminently available through state HAF implementation. Without protection against the initiation or continuation of foreclosure, HAF applicants may end up losing their homes unnecessarily or, at a minimum, having additional foreclosure-related fees and charges added to their loan accounts, which will make resolution of their delinquency more difficult and costly.

These letters are not in response to a request for comment, and I recognize that will limit the ability of some organizations to sign them.

The deadline for signing the letter is C.O.B., Wednesday, January 19, 2022.

If you have any questions, please contact Steve Sharpe, [email protected].

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