Regulators: Work With Delinquent Mortgage Borrowers
The Federal Reserve and other financial regulatory agencies are encouraging lenders to work with homeowners who are having trouble paying their mortgage. Institutions will not face regulatory penalties if they pursue reasonable workout arrangements with borrowers, the agencies said in an April news release.
Working out problems benefits all parties, agencies say
Workout arrangements include modifying loan terms and moving borrowers from variable-rate loans to fixed-rate loans, the agencies said. Programs that shift low- or moderate-income homeowners from higher-cost to lower-cost loans might receive favorable consideration under the Community Reinvestment Act, provided the loans are made in a safe and sound manner.
The regulators urge borrowers who are unable to make their mortgage payments to promptly contact their lender or servicer to discuss available options.
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