In a press release this week, the Consumer Financial Protection Bureau (CFPB) announced the issuance of an interpretive rule that will assist surviving family members in adding their names to a deceased loved one’s mortgage. The rule would provide heirs the opportunity to find a loan workout in order to remain in their home without initiating the Bureau’s Ability-to-Repay rule which requires that lenders make every effort to show a borrower’s ability to repay a mortgage.
CFPB Director, Richard Cordray, stated, “Losing a loved one should not mean also losing your home. Today’s interpretive rule makes it clear that when family members inherit property, they can take over the mortgage without jumping through unnecessary hoops. This gives heirs an opportunity to work with the lender to pay off the loan or seek a loan modification.”
To read the full press release, visit http://1.usa.gov/1kECjFm.