Business Law

Business Law News 2014, Issue 1

THE 2013 MORTGAGE SERVICING FINAL RULES

Denyse Jones

Denyse Jones

Denyse [ones is a commercial litigator in Financial Services at Husch Blackwell llp located In St. LoUIS, Missouri. Her broad practice includes financial litigation, lender liability, creditors’ rights, real estate litigation, products liability and toxic torts in federal and state court across the country. Ms. [ones graduated cum laude from Tulane Law School.

While there is plenty of blame to spread around for the 2008 financial crisis, mortgage servicers, in particular, have taken the brunt of it. The mortgage industry is the single largest market for consumer financial products and services, with approximately $10.3 trillion in outstanding loans1 for mortgages on homes, which are typically consumers’ most significant purchases. Thus, mortgage servicers play a vital role in the mortgage market.2 Consumers, however, do not have the luxury of choosing their mortgage servicer or taking their business elsewhere if dissatisfied with the service received. Poor customer service, often the result of inadequate staffing and training, is common for servicers with a high-volume, low margin business model. Additionally, enhancement of revenue streams through the collection of a myriad of fees, lean staffing, and incomplete documentation resulting in communication breakdowns further undermines a robust customer-service structure believed necessary to protect consumers, and more particularly, delinquent consumers.3 The Consumer Protection Finance Bureau (the "CFPB") attempts to shake things up.

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