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Friday, February 21, 2014

CFPB Deputy Director Expresses Disappointment in Mortgage Servicing Industry

Steve Antonakes, the Consumer Financial Protection Bureau’s deputy director, said he’s "deeply disappointed by the lack of progress the mortgage servicing industry has made" in regards to the treatment of customers. Mr. Antonakes made his statements at the Mortgage Bankers Association conference. From his speech:

"So let me very clearly lay out our expectations. In these very early days, technical issues should simply be identified and corrected. More substantively: We expect you to conduct outreach to ensure that all consumers in default know their options. We expect you to assess loss mitigation applications with care, so that consumers who qualify under your own standards get the loss mitigation that saves them – and the investor – from foreclosure."

He also specifically targeted lender-placed insurance, saying "We expect you to turn to force-placed insurance as a last resort, rather than using it as a profit center that feeds off consumers’ distress."

Learn more from the CFPB.