General World News

New CFPB guidance takes aim at ‘zombie mortgages’

The Consumer Financial Protection Bureau (CFPB) issued guidance this week for debt collectors seeking to foreclose on homes with mortgages past the statute of limitations, also known as “zombie mortgages.”

The guidance comes in the form of an advisory opinion pertaining to the Fair Debt Collection Practices Act (FDCPA) and implementation of Regulation F. The guidance notes that a covered debt collector “who brings or threatens to bring a state court foreclosure action to collect a time-barred mortgage debt may violate the [FDCPA] and its implementing regulation.”

Time-barred debt refers to debt in which details ⇒

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