On July 10, 2024, the Consumer Financial Protection Bureau (CFPB) proposed a servicing rule that would make it easier for borrowers to get help when they are struggling to pay their mortgage. The CFPB’s previous servicing rule went into effect in 2014 and relied on the borrower submitting all documentation before the servicer did a review of loss mitigation options or paused foreclosure proceedings. But during the COVID-19 pandemic, the CFPB temporarily adjusted its rules to allow borrowers to receive help without a comprehensive review. Statistics indicate the success of the pandemic policies. This set of servicing rules was designed to incorporate many of these COVID flexibilities.

We comment on two of the components of this proposed rule: (1) ensure borrowers have the information they need for loss mitigation in languages they can understand and (2) stop dual tracking and limit fees. We argue that although language access is important, the CFPB’s approach imposes too high a cost on the servicers. We argue the CFPB should first size the need through survey data collection and then decide how many languages servicers need to provide translations for. We also argue the CFPB should provide model documents. We believe dual tracking should be stopped, but the CFPB allows for multiple, long periods of borrower nonresponse, which can stretch out the resolution period, and this needs to be addressed. We agree that late fees should not be charged as a result of borrower delinquency, but property preservation fees need to be charged.