What legislative act requires a lender to establish additional protections for consumers facing default?

The CFPB mortgage servicing rules are designed to enhance consumer protections specifically for borrowers who are at risk of default or who have fallen behind on their mortgage payments. These rules were implemented as a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act and aim to ensure that lenders provide borrowers with clear communication and fair treatment during the servicing of their loans.

Under these rules, lenders must adhere to certain requirements, such as providing timely information about loan modifications, ensuring that borrowers are informed about their options to avoid foreclosure, and establishing procedures for handling complaints and inquiries more effectively. This focus on consumer protection is crucial in supporting borrowers during financially challenging times, making informed decisions, and ultimately reducing the risk of foreclosure.

The other legislative acts listed do contribute to consumer protection in various ways, but they do not specifically address the requirements related to lender protections for consumers facing default in the same focused manner as the CFPB mortgage servicing rules.