The New York Law Journal announced the new rules that were put into effect by the Consumer Financial Protection Bureau (CFPB) in a January 18, 2013 news article. The CFPB created new restrictions on how mortgage companies practices. These new restrictions were implemented to better protect consumers from unnecessary financial hardships and harassing practices.

The new restrictions are imposed on servicers, which are the parties who collect the mortgage payments on behalf of the mortgage loan owners. Servicers are generally responsible in handling all customer service issues, modifications and foreclosures. Often times these service companies are accused of abusive and harassing behavior towards consumers.

These new rules now give homeowners faced with foreclosure stronger and new protections. One of the new rules is from the beginning the service company must alert the homeowner to potential issues, specifically if the homeowner misses two consecutive payments the company must inform the homeowner of this in writing. Additionally, the service company must inform the homeowner of all of their options, not just the ones that the loan officer recommends. Another new rule is once a homeowner submits a petition to modify their loan payments the service company may not start their foreclosure process until the modification process is completed. Furthermore, the foreclosure process is not allowed to be filed until the loan has become more than 120 days past due.

Numerous other restrictions were placed to better protect a consumer from an immediate foreclosure proceeding. If you are facing financial hardships it is important to speak to an experienced attorney who can fight to enforce all of your personal and financial rights.

At the law offices of Jayson Lutzky, P.C., we have helped thousands of satisfied clients. Mr. Lutzky has over 29 years of experience in the area of family law. If you are considering divorce or are seeking an attorney regarding child support, paternity, visitation or spousal maintenance, you should contact our office at (800) 660-5299. Mr. Lutzky offers free initial in person consultations. For further information, please visit our website,