Business Law
CFPB’s Winter 2013 “Supervisory Highlights” — Features New Mortgage Servicing Rules and Examination Guidelines to Address Identified Past Problems
The Consumer Financial Protection Bureau issued its latest Supervisory Report this week, highlighting in particular the types of unfair and deceptive practices found by CFPB examiners to have been committed during the reporting period July – October 2013 by mortgage servicers. These practices were uncovered by examiners in connection with: servicing transfers; waivers of rights in loss mitigation agreements; payment processing; furnishing information to consumer reporting agencies; and other issues arising in servicing of defaulted loans. The CFPB adds that its new mortgage servicing rules to amend RESPA, TILA and ECOA, effective January 10, 2014, are meant to address each of these practices going forward. The new servicing rules can be found here.
The Supervisory Report also notes related Supervision Program Developments:
- The Bureau is changing the format of its Examination Reports and Supervisory Letters starting January 2014 to simplify them and reduce repetition, in an effort to reduce the time necessary to finalize reports and send them out to supervised entities.
- The Bureau has updated both its Mortgage Origination examination procedures and its Mortgage Servicing examination procedures to reflect implementation of all final 2013 CFPB mortgage reform rules implementing the Dodd-Frank Act.
For the CFPB’s public announcement regarding the release of its Winter 2013 Supervisory Report, go to: http://www.consumerfinance.gov/newsroom/cfpbsupervision- report-highlights-mortgage-servicing-problems-in-2013/.
For more information, please contact Melissa Richards, Chief Legal & Risk Officer, CMG Financial at mrichards@cmgfi.com.