Prior to the CFPB, nonbanks have not really been subject to any state or federal examination of their practices, which could explain the lack of any formal compliance system.
"Today's report highlights both the mortgage servicing problems throughout the industry and the challenges of making sure that nonbanks are following federal law," Richard Cordray, director of CFPB, said in a statement."Fixing both is a priority for us."
The CFPB has said it has advised servicers to take corrective action, such as "reviewing loss mitigation decisions and related fees or charges to borrowers to determine whether any reimbursement was appropriate; conducting periodic testing to monitor areas of concern; and providing reports to the CFPB on their progress completing the corrective actions."
-- Written by Shanthi Bharatwaj in New York.>Contact by Email. Follow @shavenk