New Federal rules help delinquent borrowers

The federal government has significantly expanded protections for home loan borrowers who become delinquent or who are the victims of bad record keeping by the company servicing their mortgages. Some of the protections include: mandatory loan modification efforts; communicating with heirs and others with an interest in the property if the borrower dies; providing detailed accounting of account credits and charges; keeping borrowers informed of loan modification applications; and requiring smooth transition when the loan servicing is transferred to a new loan servicer. The new rules are scheduled to become effective in mid- to late-2017 and will be enforced by the federal Consumer Financial Protection Bureau (CFPB), which was created in the wake of the Financial Crisis.