The Consumer Financial Protection Bureau (CFPB) warned mortgage firms Thursday “to take all necessary steps now to prevent a wave of avoidable foreclosures this fall.”
As of March 30, approximately 2.54 million homeowners remain in forbearance or about 4.8% of all mortgages, according to the latest data from Black Knight’s McDash Flash Forbearance Tracker.
CFPB said mortgage firms should “dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help.” To avoid what the agency called “avoidable foreclosures” when the forbearance relief lapses, mortgage servicers should begin contacting affected homeowners now to guide them on ways they can modify their loans….
The solution is obvious, as I’ve said before. Eliminate payments on loan principal, which is only destroyed by the bank anyway as the loan is paid off. Funneling money down the drain at the street level in order to “necessitate” fresh infusions of cash from above, while percolating real wealth upward only benefits the TBTF banks who reap the deluge at the top. This system persists because of widespread ignorance of how it works.