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Thursday, February 20, 2014

CFPB Outlines Servicing Expectations

Mortgage servicing compliance is a “significant priority” for the Consumer Financial Protection Bureau, CFPB Deputy Director Steve Antonakes said yesterday at a trade group event in Orlando, Fla. “Business as usual has ended in mortgage servicing.”

Antonakes outlined several expectations the CFPB has for servicers under the rule that took effect in January. The CFPB expects servicers to reach out actively to customers in default to ensure they understand their options for modifications or other relief, he said.

“We expect you to pay exceptionally close attention to servicing transfers and understand we will as well,” Antonakes said, calling on servicers to make the process “seamless” for borrowers by ensuring that all information is transferred and received. He also said the bureau expects servicers to use force-placed insurance only “as a last resort” rather than as “a profit center that feeds off consumers’ distress.”

Read the speech