Oversight of mortgage servicers is under way by the new Consumer Financial Protection Bureau, launched on July 21. Under Dodd-Frank, the CFPB will follow its Mortgage Servicing Oversight Manual, released today as part of a larger supervision manual it will use to enforce consumer financial protection today and in the years to come.
The manual specifies policies and procedures for the bureau’s examiners, which now number roughly 300 across all sectors, and includes procedures for examining routine servicing, default servicing and foreclosures.
Regulations under Dodd-Frank including The Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA) and its implementing regulation, Regulation Z, among others, are covered in the manual. The CFPB says it has begun conducting examinations of mortgage servicers and that it is a significant focus and initiative of the bureau, including homeowners who have gone through and are currently going through the foreclosure process.
Penalties for violations will range from recommendations to fines, depending on the issues and specific findings, a senior CFPB official told reporters today in a conference call.
Written by Elizabeth Ecker