CFPB Report Finds New Problems With Mortgage Servicers

In a report on findings stemming from its supervision of several consumer financial industries, the Consumer Financial Protection Bureau today outlined new problems it has found across those industries—including mortgage servicing.

The bureau found problems specifically with dual tracking at mortgage servicers that the agency says “could mislead consumers to believe their trial modifications were canceled.”

The CFPB also pointed to lack of quality control measures among consumer reporting agencies, illegal runarounds with loss mitigation applications, debt collection complaints disregarded, accuracy problems at consumer reporting agencies, and fair lending violations.

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In total, the agency’s supervisory resolutions in the first four months of 2015, the time period covered in the report, totaled $11.6 million in resolutions for more than 80,000 consumers, the CFPB said.

Its leadership highlighted concerns relating to the mortgage servicing market.

“We are extremely concerned that one year after the CFPB’s mortgage servicing rules went into effect we are still finding runarounds and illegal dual-tracking,” said CFPB Director Richard Cordray in a press release. “Consumers deserve to be treated with honesty and integrity, and our rules require that servicers give borrowers a fair process when they try to save their homes. The CFPB will continue to stand beside consumers to make sure mortgage servicers are following the law.”

Among the specific problems identified around mortgage servicing companies, the agency reported its examiners found at least one servicer that due to system error, sent notices to borrowers who were current on their loans stating that foreclosure would be imminent.

Written by Elizabeth Ecker

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