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The CFPB issued guidance on debt collectors who are foreclosing on homes with mortgages past the statute of limitations. The advisory opinion clarifies that a covered debt collector who brings a state court foreclosure action to collect a time-barred mortgage debt may violate the FDCPA and its implementing regulation. The CFPB is issuing the advisory opinion in light of a series of actions by debt collectors attempting to foreclose on silent second mortgages, also known as zombie mortgages, that consumers thought were satisfied long ago and that may be unenforceable in court.
Along with private plaintiffs, the CFPB has the authority in appropriate circumstances to take action against institutions violating the FDCPA and Regulation F. The CFPB will be monitoring the debt collection market for violations related to time-barred mortgages as well as time-barred non-mortgage debt.
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RAISING THE BAR 
