RALEIGH -- New rules approved by North Carolina banking regulators could help fight home foreclosures.
The rules, which went into effect yesterday, say that companies that service mortgages must stop foreclosure activity once a homeowner asks for a loan modification.
Lenders now go ahead with the foreclosure process at the same time they are negotiating with homeowners over how much they can pay on a mortgage. Because of backlogs from so many homeowners asking for help, processing delays have led to some people needlessly losing their homes.
The rules do not apply to banks or savings and loans, and the N.C. Banking Commission doesn't regulate federally chartered banks, such as Bank of America and Wells Fargo.
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