Dual-Track Foreclosures Limited Under U.S. Consumer Bureau Rules
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Mortgage servicers will face greater limits on their ability to foreclose on a borrower while simultaneously negotiating a loan modification under new rules issued by the U.S. Consumer Financial Protection Bureau.
The rules, some of which are required under the 2010 Dodd-Frank law that created the agency, go further than the bureau’s initial proposal in limiting the practice, known as dual-tracking. They will apply to major banks including Wells Fargo & Co. and Bank of America Corp. as well as non-bank servicers including Ocwen Financial Corp.