January 30, 2014

CFPB highlights mortgage servicer problems

Jan. 31, 2014 – The CFPB put out a report on instances of mortgage servicing misconduct during part of 2013, highlighting areas the bureau said it addressed with its new mortgage rules.

The report focused on servicers that did not honor loan modifications after a servicing transfer, misrepresented payment plans, and failed to provide correct information to consumer reporting agencies.

CFPB Director Richard Cordray said, "Problems in mortgage servicing have plagued consumers for years and helped contribute to the financial crisis. Taking action against mortgage servicing practices that harm consumers is a key priority for the CFPB. Especially under the detailed protections of our new rules, we expect servicers to clean up their act and provide responsible customer service."

NAFCU Regulatory Affairs Counsel PJ Hoffman said, "Credit unions have a long history of servicing their members' loans and retaining servicing rights even when they sell the loan. Credit unions pride themselves on member service and have earned their members' trust."