The Consumer Financial Protection Bureau said it’s proposing a new rule when the mortgage forbearance ban ends. This new rule would eventually be a foreclosure ban, putting banks and other lenders, again on the back foot when it comes to dealing with the fallout of covid. The CFPB’s reasoning, according to Diane Thompson, a senior advisor to the CFPB is that “As soon as they exit forbearance, they could be placed in foreclosure immediately.”
Which of course is the point of having an end point to bans on foreclosures and evictions, at some point people have to reconcile their debts, they don’t just get to hold off paying forever.
To discuss this further, Lars spoke with realtor Nick Shivers, of the Nick Shivers team who explains exactly what this pseudo foreclosure ban would mean for America’s already upset housing market.