CFPB: Some Mortgage Servicers Violated New Servicing Rules

first_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Home / Daily Dose / CFPB: Some Mortgage Servicers Violated New Servicing Rules Examiners from the Consumer Financial Protection Bureau (CFPB) found that some mortgage servicers violated federal laws while supervising for compliance, CFPB announced recently.CFPB examiners found that some servicers failed to oversee the activities of service providers. CFPB’s new mortgage servicing rules that went into effect in January 2014 specifically require servicers to have a set of policies and procedures in place to oversee the activities of service providers, who are often contracted for the purpose of developing or marketing additional products. Failure to oversee the activities of service providers who are not familiar with CFPB’s rules can result in harm to the consumer.The CFPB investigation also revealed that some servicers unfairly delayed permanent loan modifications. The examiners found that some servicers delayed the conversion process from a trial loan modification into a permanent loan modification, thus preventing the consumer from receiving all the benefits that a permanent loan modification offers.The third violation of the mortgage servicing rules that CFPB examiners uncovered was some servicers deceived consumers about the status of their permanent loan modifications. Examiners found that some servicers failed to execute permanent loan modification agreements which had been signed and returned to them by borrowers. The servicers instead waited a period of time, then sent the borrowers updated agreements with different terms, thus affecting the borrowers’ payment and, in some cases, whether or not the borrower could accept the revised modification based on financial means and budgets.In addition to these servicer violations, CFPB examiners found that some consumer reporting agencies were not adequately tracking and resolving consumer complaints, and they found at least one debt collector that was charging consumers with illegal fees and threating litigation it had no intention of pursuing.CFPB’s issued the new mortgage servicing rules as a means of protection for struggling borrowers and for homeowners from servicing runarounds, and since then the Bureau has issued two warning bulletins to mortgage servicers regarding the servicing transfer rules. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago CFPB Consumer Financial Protection Bureau Mortgage Servicers Mortgage Servicing Rules 2014-10-29 Brian Honeacenter_img About Author: Brian Honea CFPB: Some Mortgage Servicers Violated New Servicing Rules The Best Markets For Residential Property Investors 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Previous: LoanLogics Introduces Time-Saving Signature Audit Tool Next: Fed Announces End of QE3 Asset Purchase Program Tagged with: CFPB Consumer Financial Protection Bureau Mortgage Servicers Mortgage Servicing Rules October 29, 2014 1,040 Views Demand Propels Home Prices Upward 2 days agolast_img

Leave a Reply