CFPB Flags Mortgage Servicing Issues in Latest Supervisory Highlights
March 13, 2019
The Consumer Financial Protection Bureau yesterday issued a “Supervisory Highlights” report focusing on recent examiner observations of several bank products or business lines, including auto loan servicing, deposits, mortgage servicing and remittances.
Examiners noted several issues related to mortgage servicing, including: charging consumers unauthorized late fees; misrepresenting the conditions under which private mortgage insurance would be removed; failing to exercise reasonable diligence to complete loss mitigation applications; and failing to properly represent the requirements for foreclosure timeline extensions for home equity conversion mortgages.
The bureau also flagged issues related to compliance with the remittance rule and misrepresentations made to consumers about when their deposit account would be debited through an institution’s online bill-pay service. Read Supervisory Highlights.