Reuters-

The U.S. Consumer Financial Protection Bureau announced new rules for mortgage servicers on Thursday to help prevent the sloppy practices that aggravated the U.S. foreclosure crisis.

Mortgage servicers collect monthly payments from borrowers on behalf of the investors that own the loans. That often involves letting borrowers know about the status of loans, modifying the loans for those struggling to make payments on time, and handling foreclosures.

The CFPB rules will now require servicers to follow clear procedures to help troubled borrowers seeking alternatives to losing their homes. The rules also restrict what is known as dual-tracking, in which servicers simultaneously pursue a loan modification and the foreclosure process.

[REUTERS]