Bradley Partner Jonathan Kolodziej Quoted in National Mortgage News on How CFPB's Foreclosure Delay Could Impact Non-QM Lenders and Investors

April, 2021 - Birmingham, Alabama

Bradley attorney Jonathan Kolodziej was quoted in National Mortgage News on how the CFPB's foreclosure delay could impact non-QM lenders and investors. While the CARES Act directed lenders of government-related loans to take certain actions in the face of the pandemic, the CFPB's new proposal for handling mortgages exiting forbearance plans extends to lenders outside of that category and will force them to follow the proposed guidance. 

"They don't necessarily have to develop new programs, for those private paper loans, but if it's going to be sitting there untouched with no path forward, perhaps the mutually beneficial approach would be to find some alternative whether it be a modification or deferral or something to keep the income source coming in," said Kolodziej.

While forbearance plans and deadline extensions for conforming and government loans were made clear in the CARES Act, for the non-qualified mortgage and private-label market, the time frames and methods varied widely.

Now, the legal risks to the private-label and portfolio servicers would be the same as for those that service the government-backed loans, explained Kolodziej, as "they're going to just be subject to the federal law. It's really a wide umbrella so I think everybody kind of gets brought under the same framework which ultimately results in the same level of risk for nearly everyone."

The original article, "How the CFPB's Foreclosure Delay Could Impact Non-QM Lenders, Investors," appeared in National Mortgage News on April 12, 2021.

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