CFPB Releases Latest Supervisory Highlights Focused On Mortgage Servicing

The Consumer Financial Protection Bureau released their 11th edition of Supervisory highlights, a special edition with a direct warning to mortgage servicers. The report typically shares findings and examination observations in various areas of oversight like student loan servicing, mortgage origination and debt collection. However this edition focuses on mortgage servicing technology; loss mitigation acknowledgement notices; loss mitigation offers; loan modification denial notices; policies and procedures; and servicing transfers. The warning is specific to failed technology that continues to be used by some mortgage servicers that has already harmed consumers placing a servicer in violation of CFPB's servicing rules. Richard Cordray is quoted in the release with this stern warning, "There are no excuses for not following federal rules."