By DEREK KRAVITZ, AP Economics Writer

WASHINGTON (AP) -- The federal government plans to propose new rules on Tuesday that will give homeowners more ways to avoid foreclosure and get an accurate accounting of their monthly mortgage payments.

Congress mandated changes in the rules covering the mortgage servicing industry in the wake of the 2008 financial crisis.

The Consumer Financial Protection Bureau's proposed rules would require mortgage servicers to give all borrowers standardized monthly statements and warn borrowers about interest rate or insurance changes.

The mortgage servicers would also be required to make "good-faith efforts" to contact borrowers at risk of foreclosure and give them options to avoid losing their homes. There are also stipulations for improving record-keeping and providing foreclosure counseling to those who need it.

The agency said it will formally propose the rules this summer and finalize them by January 2013.

Nearly 8 million Americans have faced foreclosure since the housing bubble burst in late 2006. Many homeowners have said companies that process mortgages failed to verify information on foreclosure documents. The worst practices, known collectively as "robo-signing," included employees signing documents they hadn't read or using fake signatures to approve foreclosures.

In February, the nation's five largest mortgage lenders agreed to overhaul their mortgage servicing practices and pay $25 billion to U.S. states to help those who lost their homes or face foreclosure.

A mortgage servicer collects payments from the borrower on behalf of a loan's owner and typically handles customer service, escrow accounts, collections, loan modifications and foreclosures. Most borrowers do not choose their mortgage servicers. The owner of a loan frequently is not the original lender, even when the original lender is the servicer.

The Consumer Financial Protection Bureau supervises U.S. payday lenders, mortgage companies and private student lenders. It also can write rules to supervise big lending companies.


NEXT: Top 10 College Towns for Buying Foreclosures

• <p class="p1"> For real estate buyers who have the cash and credit to take advantage of historically low mortgage rates, there is one market type that tends to be more resilient than others: the college town.</p><br /> <p class="p1"> Established, big-name universities, with their steady and ever-replenishing supplies of new students, faculty and administrators, virtually guarantee tenants and future buyers. Additionally, more retirees are choosing to move to college towns for the cultural amenities. Of course, the downsides for home buyers, particularly investors, are that renting in college towns is a somewhat seasonal business, with a summer decline, and there's always the threat of keg-party damage.</p><br /> <p> <em>Foreclosure sales data compiled by</em> <a href="http://www.foreclosurenewsreport.com/" target="_blank">Foreclosure News Report </a><em>for the first half of 2011.</em></p>
• <p> The College Town of: <strong>Stanford University</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>94</strong></p> <br /> <p> Average price of foreclosures: <strong>$350,886</strong></p> <br /> <p> Percent below the average price of properties: <strong>69%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>17%</strong></p> <p> </p>
• <p> The College Town of: <strong>Ohio State University</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>999</strong></p> <br /> <p> Average price of foreclosures: <strong>$57,700</strong></p> <br /> <p> Percent below the average price of properties: <strong>58%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>17%</strong></p> <p> </p>
• <p> The College Town of: <strong>University of Louisville</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>889</strong></p> <br /> <p> Average price of foreclosures: <strong>$84,495</strong></p> <br /> <p> Percent below the average price of properties: <strong>51%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>25%</strong></p> <p> </p>
• <p> The College Town of: <strong>Northwestern University</strong></p> <p> </p> <br /> <p> Amount of properties sold: <strong>74</strong></p> <br /> <p> Average price of foreclosures: <strong>$190,930</strong></p> <br /> <p> Percent below the average price of properties: <strong>47%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>24%</strong></p> <p> </p>
• <p> The College Town of: <strong>Louisiana State University</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>221</strong></p> <br /> <p> Average price of foreclosures: <strong>$115,043</strong></p> <br /> <p> Percent below the average price of properties: <strong>45%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>14%</strong></p> <p> </p>
• <p> The College Town of: <strong>University of Arizona</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>3,068</strong></p> <br /> <p> Average price of foreclosures: <strong>$116,916</strong></p> <br /> <p> Percent below the average price of properties: <strong>41%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>50%</strong></p> <p> </p>
• <p> The College Town of: <strong>University of Tennessee</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>431</strong></p> <br /> <p> Average price of foreclosures: <strong>$108,595</strong></p> <br /> <p> Percent below the average price of properties: <strong>41%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>8%</strong></p> <p> </p>
• <p> The College Town of: <strong>Florida State University</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>339</strong></p> <br /> <p> Average price of foreclosures: <strong>$112,790</strong></p> <br /> <p> Percent below the average price of properties: <strong>35%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>29%</strong></p> <p> </p>
• <p> The College Town of: <strong>Texas Tech University</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>74</strong></p> <br /> <p> Average price of foreclosures: <strong>$91,454</strong></p> <br /> <p> Percent below the average price of properties: <strong>33%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>5%</strong></p> <p> </p>
• <p> The College Town of: <strong>University of Michigan</strong></p> <br /> <p> </p> <p> Amount of properties sold: <strong>130</strong></p> <br /> <p> Average price of foreclosures: <strong>$181,766</strong></p> <br /> <p> Percent below the average price of properties: <strong>31%</strong></p> <br /> <p> Percent of foreclosures from all home sales: <strong>24%</strong></p> <p> </p>
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