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opportunity to switch to full loss mitigation
enforcement mode. is is all about the
timing for the consumer regulator. As a
reminder, forbearance was available to be
extended for loans backed by Fannie Mae
and Freddie Mac for 18 months. Many of
the borrowers who entered forbearance near
the beginning of the pandemic have since
emerged from these forbearance periods.
Also, the CFPB's eviction freeze ended at the
conclusion of 2021.
Now, lenders and servicers will need to
double down on their due diligence efforts in
order to best serve their borrowers and avoid
unwanted attention from the CFPB, which is
watching the market closely.
REGULATORS WATCH FOR
EQUITABLE TREATMENT OF
BORROWERS
e CFPB announced in March that it is
changing its supervisory operations in order
to better protect from illegal discrimination
in the financial space. e Bureau said it will
scrutinize discriminatory conduct that violates
the federal prohibition against unfair practices.
It said it will go beyond even where fair
lending laws apply. e Bureau said consumers
can be harmed by discrimination, even if it
is unintentional. It said it will examine for
discrimination in all consumer finance markets
including credit, servicing, collections, consumer
reporting, payments, remittances, and deposits.
"When a person is denied access to a bank
account because of their religion or race, this is
unambiguously unfair," CFPB Director Rohit
Chopra said. "We will be expanding our anti-
discrimination efforts to combat discriminatory
practices across the board in consumer finance."
e CFPB previously warned servicers
to prepare for the end of forbearance, saying
"unprepared is unacceptable." It said servicers
should begin taking the necessary steps to
prevent "avoidable foreclosures."
"ere is a tidal wave of distressed
homeowners who will need help from their
mortgage servicers in the coming months,"
former CFPB Acting Director Dave Uejio
said at the time. "Responsible servicers should
