San Francisco, August 4, 2016- The Consumer Financial Protection Bureau released its final mortgage servicing
rule today, with stronger protections to prevent unnecessary foreclosures on successors-in-interest, more
commonly known as “widow foreclosures.”
In response, Kevin Stein from the California Reinvestment Coalition (CRC) and Maeve Elise Brown from
Housing and Economic Rights Advocates (HERA) issued these statements:
“We are glad to see the CFPB issue its much anticipated final rule on mortgage servicing, which clarifies the
obligations that mortgage servicers have to work with successors in interest (widows, orphans and similar heirs).
As expected, the rule acknowledges that these successors are confronting a variety of hurdles when trying to
work with their mortgage servicer to keep their family home,” explains Stein. “To address this problem, the
Bureau’s new rule provides confirmed successors the same rights as all borrowers which is positive. At the same
time, it was concerning to see the Bureau chose not to include an accountability mechanism (like a private right
of action) to ensure the servicers would follow the new rules. And, these new rules won’t take effect until early

Brown adds: “Fortunately, pending state legislation, Senate Bill 1150 (Leno, Galgiani), includes a private right
of action for California successors to ensure that mortgage servicers are held accountable for following the rules.
We learned from the Homeowner Bill of Rights that including this mechanism created accountability and forced
mortgage servicers and banks to clean up their acts and stop illegal foreclosures. Senate Bill 1150 would do the
same thing for the most vulnerable homeowners in California.” She adds: “The CFPB’s new rules, coupled with
SB1150, would go a long way towards leveling the playing field and helping to preserve the largest asset most
Americans will ever own.”
Additional Context:
Broad Support: SB 1150 is co-sponsored by Housing and Economic Rights Advocates (HERA), the California
Reinvestment Coalition (CRC), and the California Alliance for Retired Americans (CARA). SB 1150 is
supported by California Attorney General Kamala Harris and over 60 well-known organizations, including
AARP California, California State Conference of the National Association for the Advancement of Colored
People, Courage Campaign, CalPIRG, the Multicultural Real Estate Alliance for Urban Change, the National
Council of La Raza, the National Housing Law Project, Neighborhood Housing Services of Los Angeles
County, and more.