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Thursday, August 21, 2014

CFPB Bulletin Addresses Mortgage Servicing Transfers

By: ABIA Outside Counsel Chrys D. Lemon, McIntyre & Lemon, PLLC

The CFPB released a bulletin outlining expectations for mortgage servicers on loan transfers.
“[The] bulletin gives examples of some things CFPB examiners will look for when loans are transferred. In particular, CFPB examiners will carefully scrutinize transfers of loans with pending loss mitigation applications or approved trial and permanent modification plans. Examples of good practices by servicers include flagging those loans and taking special care to ensure that all relevant documents are transferred in a timely manner.
“‘At every step of the process to transfer the servicing of mortgage loans, the two companies involved must put in appropriate efforts to ensure no harm to consumers. This means ahead of the transfer, during the transfer, and after the transfer,’ said CFPB Director Richard Cordray. ‘We will not tolerate consumers getting the runaround when mortgage servicers transfer loans.’”
If you would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contactus and visit our website