August 24, 2014

CFPB bulletin highlights mortgage servicing transfers

Aug. 20, 2014 – CFPB put out a bulletin Tuesday on mortgage servicing requirements – particularly highlighting expectations for mortgage servicers that transfer loans.

NAFCU has been pushing CFPB to coordinate with other agencies, including NCUA, on examination expectations and increase transparency on what examiners from both agencies will be looking for.

In a release, CFPB said, "Today's bulletin gives examples of some things CFPB examiners will look for when loans are transferred. In particular, CFPB examiners will carefully scrutinize transfers of loans with pending loss mitigation applications or approved trial and permanent modification plans. Examples of good practices by servicers include flagging those loans and taking special care to ensure that all relevant documents are transferred in a timely manner."

CFPB Director Richard Cordray stated that financial institutions transferring mortgage loans must coordinate on behalf of consumers, and said the bureau "will not tolerate consumers getting the runaround."