The following report is from CNBC:
Millions of Americans took advantage of the payment suspension and mortgage forbearance programs both lenders and the federal government rolled out due to the Covid-19 pandemic last year. But as these emergency programs start to wind down this year, the Consumer Financial Protection Bureau wants to put safeguards in place to ensure millions of families aren’t forced into foreclosure.
A year into the pandemic, about 2.5 million homeowners are still enrolled in some type of forbearance program, according to the Mortgage Bankers Association’s data for the week of March 21, 2020. Yet even with these programs in place, about 5% of homeowners are currently delinquent on their mortgages, the MBA found in its latest report.
That could increase exponentially as forbearance programs start to wind down this fall.
Emergency protections for homeowners will start to expire later this year and by the fall, a flood of borrowers will need assistance from their servicers. The CFPB is proposing changes to the mortgage servicing rules that will ensure servicers and borrowers have the tools and time to work together to prevent avoidable foreclosures, which disrupt lives, uproot children and inflict further costs on those least able to bear them.
CFPB Acting Director Dave Uejio
To help homeowners who are behind on their mortgages, the CFPB is proposing a new rule that would establish a “temporary Covid-19 emergency pre-foreclosure review period” that would essentially block mortgage servicers from starting the foreclosure process until after December 31, 2021.
This new review period would be in addition to existing rules that bar loan servicers from starting the foreclosure process until a homeowner is more than 120 days delinquent on their home loan.
Many of the current forbearance programs were set up in the CARES Act last year and apply to federally-backed loans offered through agencies including Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Housing and Urban Development. Private lenders and servicers also set up their own forbearance programs. The CFPB’s proposed rule would cover all homeowners, including those with mortgages through private lenders such as banks.
The CFPB’s plan issued Monday is a proposal at the moment. The agency is seeking public comments through May 11 before issuing a final rule.
In addition to requiring mortgage servicers to undertake a review period, the CFPB is also proposing a streamlined loan modification process, which typically allows homeowners to apply to have their loan interest rate reduced, extend the term of their loan and/or reduce their monthly payments.
The streamlined process would allow servicers to offer some loan modification options based on incomplete applications. Normally, borrowers need to submit a myriad of documents — including proof of income, such as pay stubs, tax returns and recent bank statements — before a servicer can make a decision.
Streamlining the process would allow servicers to get homeowners into less burdensome payments faster, CFPB says. The expedited process would only be available for loan modification options that do not increase homeowners’ monthly payments, extend the mortgage’s term more than 40 years or charge any fees.
In February, President Joe Biden directed federal housing regulators to extend mortgage forbearance programs for an additional six months and prolong foreclosure relief programs in a move that covered an estimated 70% of mortgages for single-family homes in the U.S.
Morgages backed by Fannie Mae or Freddie Mac, as well as by the Department of Veterans Affairs (VA), the Department of Agriculture (USDA) and the FHA announced that they were expanding their forbearance programs for up to 18 months. For homeowners who requested enrollment in March and April 2020, it means that those programs will expire in September and October.
AUTHOR COMMENTARY
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
The rich man’s wealth is his strong city: the destruction of the poor is their poverty.
Proverbs 10:15
If this actually goes through… if you thought the bubble we have now that would destroy millions and upon millions in the inevitable crash, then this will cause that bubble to inflate to astronomical levels. And when the newly inflated bubble pops, that will unquestionably end America at that point. I mean, talk about kicking the can down the road on this one!
Military Intelligence Group Forecasts A 70% Decrease In The U.S. Population By 2025
So not only could people not be evicted and foreclosed upon, they now can “have their loan interest rate reduced, extend the term of their loan and/or reduce their monthly payments.” So instead of getting out of debt and making payments, let’s just keep kicking this can down the road some more. But not only that, if someone wanted to participate in this, the homeowner essentially needs to provide no real validation that they cannot make their payments: they just say they can’t, which then gives them the greenlight to spend more money on even more useless junk while not paying down their mortgage – especially when they can request to get reduced payments and have the mortgage restructured to add more time to pay it off.
Now with all the added funds from not having to pay, now the homeowners can then go out and then reinvest into more of the markets causing the bubble to blow exponentially bigger. Then prices across the board will inflate even more adding to even more of the craziness.
The bankster gangsters are just loving the sound of this: they’re the real winners out of all this because extending the loans would just allow them to collect more interest annually.
The bottom line here is that if this really goes through, which I would expect it to, then the markets are going to absolutely love the sound of that and the bubble will just increase to insane levels. I keep reiterating that because at some point the bubbles MUST and WILL POP, and when they do, this will effectively burry untold millions. The upheaval from such a fallout would essentially end America. It will turn to anarchy and “dog eat dog” very quickly arise as these untold millions will lose everything, while those that are wealthy and well off will see their wealth launch higher like a rocket ship. Stay prepared.
We already have noted in previous reports that Less Than 40% Of Americans Can Fund A $1K Emergency Fund. We have reported that because of bureaucratic bungling by our useless government and President Trump, the CARES Act allowed individuals to access retirement funds with no penalties – resulting in roughly $12 billion in retirement funds to be consumed. So now even more people cannot retire as most of those same people are the same ones that can barely making a chintzy savings fund. What do you suppose will happen when the markets finally recorrect themselves and the Fed’s pull back their aid temporarily?
What a great way to get people into the smart cities, wouldn’t you say?
Agenda 2030: You’ll Own Nothing And Be Happy
Vehicle Giant Toyota Building A Smart City In Japan
The Great Reset Explained In The Words Of The World Economic Forum
[26] Be not thou one of them that strike hands, or of them that are sureties for debts. [27] If thou hast nothing to pay, why should he take away thy bed from under thee?Proverbs 22:26
History Repeating Itself: The Masses Did Not Learn From The Great Recession
Evangelical Financial Advisor Dave Ramsey Says There Is No Market Bubble
But hey, don’t pay attention to this: listen to the media “experts;” they say everything is peachy so it must be, right? Don’t be like most “CHRISTIANS.” Trust in Jesus Christ and make the right decisions to avoid this mess.
To do a bit of brief promotion here: what other Christian outlets dare to talk about this stuff? We know that these church buildings up and down this country (pick any denomination or sect) will not talk about this stuff, but these professing Christian outlets are not warning people of the coming dangers. We are. No glory to us as glory belongs to the Lord (2 Corinthians 10:9-18), but I feel it is important to remind readers this, and new comers, as to why you pray and support us if you can. We are talking about things barely any professing Christian ministry dares to touch: the majority of them are off bowing down at the golden idol of Trump! Some naysayers scoff and discourage talking about these things, but we want to keep you aware of the dangers and keep you prepared. Knowledge is power after all.
Buy the truth, and sell it not; also wisdom, and instruction, and understanding.
Proverbs 23:23
[21] My son, let not them depart from thine eyes: keep sound wisdom and discretion: [22] So shall they be life unto thy soul, and grace to thy neck. [23] Then shalt thou walk in thy way safely, and thy foot shall not stumble. [24] When thou liest down, thou shalt not be afraid: yea, thou shalt lie down, and thy sleep shall be sweet. [25] Be not afraid of sudden fear, neither of the desolation of the wicked, when it cometh. [26] For the LORD shall be thy confidence, and shall keep thy foot from being taken.Proverbs 3:21-26
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
