New rules restrict foreclosures - WTOC-TV: Savannah, Beaufort, SC, News, Weather & Sports

New rules restrict foreclosures

(CNN) - A new lifeline was announced today for homeowners facing foreclosure.

The Consumer Financial Protection Bureau has issued new rules for mortgage servicers that handle issues like loan modifications and foreclosures.

Apparently many of the companies are unable to handle the flood of delinquent loans, and the federal government states that has contributed to unnecessary foreclosures.

Restrictions prohibit servicers from foreclosing on borrowers seeking loan modifications.

The rules also provide guidelines for clear, straightforward mortgage statements.

Still, consumer advocates say the new rules don't go far enough.

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