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CFPB on Tuesday issued a report noting illegal actions through the bureau's supervision over the student loan and mortgage servicing markets, including consumers being charged unfair late fees and receiving inappropriate debt collection calls.

The bureau also said some mortgage servicers failed to provide the necessary consumer protections.

This latest CFPB report covers supervisory actions between March and June. Regarding student loan servicers, CFPB found that some servicers were, among other things:

• allocating payments to maximize late fees;
• misrepresenting minimum payments;
• charging illegal late fees;
• failing to provide accurate tax information; and
• making illegal debt collection calls to consumers.

Regarding mortgage servicing – for which CFPB rules took effect in January – the bureau examiners found that some servicers were:

• failing to oversee service providers
• unfairly delaying permanent loan modifications; and
• deceiving consumers about the status of permanent loan modifications.

NAFCU, in ongoing dialogue with CFPB, emphasizes that credit unions, as not-for-profit, member-owned cooperatives, are structured and incentivized unlike most other financial institutions to take a direct interest in their members and meet their financial needs on a daily basis. Credit unions work with members to ensure they are in the appropriate product and have an interest in building a life-long financial relationship with borrowers.

NAFCU has provided credit unions with many resources regarding CFPB's new mortgage rules. The association has also testified on the impact the new rules have had on credit unions and their compliance burden.