The Consumer Financial Protection Bureau (CFPB) in coming weeks will adopt a rule requiring mortgage servicers to give struggling homeowners until next year to resume repayments, but is expected to carve out some groups of borrowers following industry pushback, Reuters reported. The CFPB in April proposed, among other measures, a new review process that would generally prohibit mortgage servicers from starting a foreclosure until after Dec. 31, 2021. The rule will throw a lifeline to hundreds of thousands of homeowners due to exit COVID-19 mortgage holiday or "forbearance" programs in coming months. The CFPB plans to finalize the rule and make it effective before the end of August, but has agreed to carve out certain groups of borrowers after the industry said that the proposal was too broad and beyond the CFPB's legal remit. A CFPB spokesperson said the agency is working on finalizing the proposal but did not comment on what exclusions had been agreed to.
