CFPB Acts Against Mortgage Servicing Fees

On April 24, 2024, the Consumer Financial Protection Bureau (CFPB) continued its assault on fees in the consumer finance industry. In its most recent edition of Supervisory Highlights, the CFPB reported that mortgage servicers charged fees—and engaged in related practices—in violation of the Dodd-Frank Act's prohibition of unfair practices and other regulatory provisions:

1. Servicers improperly and unfairly charged for property inspection fees when such inspections were in violation of Fannie Mae guidelines;
2. Servicers improperly and unfairly charged late fees in excess of the amounts allowed in the loan agreements;
3. Servicers improperly and unfairly charged late fees after borrowers had entered into loss mitigation agreements that prevented the imposition of such fees;