On August 2, 2016, the CFPB published a new guidance document titled CFPB’s Principles for the Future of Loss Mitigation (the “Guidance”), which outlines a recommended framework for new, industry-driven foreclosure relief programs. The Guidance largely follows the July 25, 2016, white paper jointly issued by the U.S. Department of the Treasury (“Treasury”), the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Finance Agency (FHFA) (collectively, the “Agencies”), in which the Agencies called for industry stakeholders to design and implement a loss mitigation framework tailored to the post-crisis mortgage market (the “White Paper”). Importantly, both the Guidance and the White Paper come as Treasury’s Home Affordable Modification Program (HAMP) is set to expire on December 31, 2016.
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