CFPB Issues Bulletin On Mortgage Servicing Transfers

The CFPB has issued a bulletin advising mortgage companies about their legal obligations that protect consumers during loan transfers between mortgage servicers. The CFPB is concerned that when handing over the processing of loans, mortgage servicers should not lose paperwork, lose track of a homeowner’s loss mitigation plans, or hinder a consumer’s chances of saving their home from unnecessary foreclosure. The CFPB has a heightened concern about these practices given the large number and size of recent servicing transfers.

 Today’s guidance also informs the industry that the CFPB will be taking a close look at:

  • How a servicer has prepared for the transfer of servicing rights or responsibilities.
  • How the new servicer handles the files it receives through a transfer.
  • What policies the servicers have to prevent borrower harm for loans with loss mitigations in process.

Check dodd-frank.com frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.

Topics:  CFPB, Mortgage Loan Servicing Standards, Mortgages

Published In: Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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