WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) along with the prudential regulators – the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of Comptroller of the Currency − issued joint guidance today to address mortgage servicer practices that may pose risks to homeowners who are serving in the military.
The guidance, which is intended to ensure compliance with applicable consumer laws and regulations, pertains to military homeowners who have received Permanent Change of Station (PCS) orders, which occur when a servicemember is ordered by the military to relocate to a new installation. Roughly one-third of active-duty servicemembers receive PCS orders each year.
“Those who serve our country deserve to be given the best service by their mortgage servicer,” said CFPB Director Richard Cordray. “Permanent Change of Station orders can complicate a servicemember’s homeownership decisions in ways that civilians may not experience. This guidance provides specific notice to mortgage servicers that this country already has substantial laws in place to help military members in this still-recovering housing market.”