According to a new rule from the Consumer Financial Protection Bureau, heirs will now be able to take over mortgages from homeowners who have passed away. The rule states that when the home borrower dies, the heir can then be added to the mortgage without activating the CFPB’s Ability-to-Repay rule. The CFPB Director, Richard Cordray said, “losing a loved one should not mean also losing your home. [This] interpretive rule makes it clear that when family members inherit property, they can take over the mortgage without jumping through unnecessary hoops. This gives heirs an opportunity to work with the lender to pay off the loan or seek a loan modification.” More here
