The US government has proposed some new mortgage lending rules that could help many homeowners avoid foreclosure. The Consumer Financial Protection Bureau‘s proposed the rules this morning that would require mortgage companies to to offer all borrowers standard monthly statements, and inform customers of any interest rate or insurance changes. Companies would also be responsible for certain “good faith efforts” to inform borrowers at risk of foreclosure, and find options for them to salvage their homes.
An estimated 8 million Americans have faced foreclosure since the housing market began to sank in 2006. Many homeowners have pledged that mortgage companies failed to inform them of foreclosure threats, or verify information on important foreclosure documents. For more information on the foreclosure proposal, visit the Seattle Times.