Mortgage lenders no longer have to offer special COVID-19 payment relief

The US consumer protection agency has removed rules that required mortgage lenders to offer special payment relief to borrowers affected by the COVID-19 pandemic. This means lenders can now return to their standard foreclosure procedures for homeowners who fall behind on payments.

During the pandemic, homeowners struggling to pay their mortgages had extra protections, like the right to request payment forbearance. These rules prevented a wave of foreclosures. Now, those protections are gone, and lenders can move forward with foreclosures more quickly. This shift could expose many homeowners to greater financial risk.