Consumer Federation of America joined 67 other national, state, and local organizations to support the Department of Housing and Urban Development’s (HUD) proposed rule to amend and improve regulations on the mandatory meeting that mortgage servicers must hold with Federal Housing Administration (FHA)-insured borrowers early in the default process.

This includes:

• Eliminating the loophole that allows services to avoid mandatory meetings if they do not have a branch office within 200 miles (a ruling that needs modernization considering the growing role of independent mortgage banks (IMBs) in government-lending in particular).
• Providing additional guidance on the procedural standards around how to schedule the meeting, offer borrowers’ sufficient notice, and provide inclusive language access.
• Implementing sufficient quality control, to ensure servicers indeed follow this updated ruling.