Consumer Groups Call CFPB Mortgage Rules Inadequate

Law360, New York (October 11, 2012, 2:41 PM EDT) -- A coalition of consumer advocates on Tuesday urged the Consumer Financial Protection Bureau to revise, or even scrap, some of its proposals for reforming the mortgage servicing industry, saying they don't go far enough to protect homeowners from unnecessary foreclosures.

In its comment letter, Americans for Financial Reform, an umbrella group comprised of national and state organizations, said that loss mitigation provisions in the CFPB's August proposal, such as loan modifications, are inadequate to solve servicing problems that lead to unnecessary foreclosures.

AFR also said the...
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