What the CFPB May Target in Second Round of Mortgage Servicing Rules
The CFPB has released a bulletin outlining new policies for mortgage servicing transfers that has the industry on alert. This bulletin details what examiners expect to see in formal plans of mortgage servicers when transferring loans to another servicer, particularly when the mortgage is in the middle of loss mitigation or modification. A CFPB spokesman said the agency is “carefully monitoring the impact” of its existing new servicing rules.
The CFPB’s initial mortgage servicing rules covered significant ground in ensuring companies respond to struggling consumers in a timely manner and keep accurate records. But the August 19th bulletin illustrates that The CFPB is still worried about errors that could occur when servicing transfers involve large amounts of loans.
The CFPB’s bulletin is considered a tough, yet helpful guidance through the process, but the question still remains “how does it get implemented” How this guidance will truly affect mortgage servicing transfers will depend on whether it’s implemented in a way that gives servicers time to adapt to the complex transactions, or whether it will go straight to enforcement.
Stay tuned with AppraisalPro’s blog to for more updates.
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