There is a tsunami of changes on the horizon commencing in 2017 that will have a significant impact on distressed homeowners and their ability to obtain a loan modification and ultimately save their home. Please note the following significant changes that will occur in 2017:
Termination of the HAMP Program. The MHA Program will terminate on December 31, 2016, except with respect to certain loan modification applications made before such date.
Termination of Mortgage Forgiveness Debt Relief Act. This Congressional act provided special relief to homeowners who had “qualified mortgage interest” forgiven by lenders. Under the Mortgage Forgiveness Debt Relief Act of 2007 taxpayers could generally exclude income resulting from the discharge of debt on their principal residence. The Act provided a tax exemption for homeowners for “income” resulting from debt forgiveness related to foreclosures, short sales and principal forgiveness of loans. However, the provision (previously extended) will terminate on December 31, 2016.
Attempted repeal of Dodd-Frank. The Dodd-Frank Wall Street Reform and Consumer Protection Act was a massive financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008. Dodd-Frank was Congress’ attempt to legislate new rules that would prevent a repeat of the 2008 financial crisis. Steven Mnuchin, Donald Trump’s choice for Treasury Secretary, stated he would focus on rolling back parts of the landmark 2010 Dodd-Frank financial overhaul law enacted in the wake of the financial crisis. Donald Trump has vowed that he would dismantle the Dodd-Frank Act.
Undermine and restructure of Consumer Fraud Protection Bureau. The CFPB is an agency of the United States government responsible for consumer protection in the financial sector. CFPB jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States. The CFPB’s creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08 and the subsequent Great Recession. The agency, funded by the Federal Reserve, remains independent of Congressional oversight. But, the banking industry would like to see it funded by Congress and for its director to be replaced by a five-member commission thereby threatening its independence. Donald Trump has vowed to gut the CFPB and have its Director removed soon after he is inaugurated in January, 2017.
Contact A New York Foreclosure Attorney
Thus, it is imperative that a distressed homeowner in foreclosure take immediate action to minimize their exposure to the changes that may occur in 2017. Our Foreclosure Defense Law Firm zealously fights on behalf of homeowners and guides them through all stages of the maze-like foreclosure process. Contact our office immediately if you need assistance and wish to save your home. Call us at 1-800- 985-9007.