CFPB Urges Mortgage Servicers to Upgrade Technology to Reduce Errors, Or Else…


CFPB Urges Mortgage Servicers to Upgrade Technology to Reduce Errors

WASHINGTON—The Consumer Financial Protection Bureau on Wednesday urged mortgage-servicing companies to invest more in technology to reduce delays and errors in handling customer information.

The federal watchdog agency said it found “numerous” mortgage servicers, essentially middlemen between lenders and borrowers, in violation of its 2014 rules requiring them to maintain accurate records. The rules also include protections for homeowners facing foreclosure by requiring companies to provide direct access to servicing personnel, while crediting payments and correcting errors promptly.

The CFPB didn’t name any companies or break out the number of violations it found.

Mortgage servicers are responsible for collecting payments from mortgage borrowers and forwarding them to the owners of loans, as well as handling any loan modifications and foreclosures. Consumers don’t choose their mortgage servicers when a home loan is originated, and loans can be transferred from one servicer to another.

The CFPB’s examiners found the companies haven’t invested enough to comply with the rules, and some lacked proper training and auditing of their computer systems and software platforms. “As a result of this insufficient investment, mortgage servicing problems continue to plague consumers,” the agency said in a press release.

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2 Responses to “CFPB Urges Mortgage Servicers to Upgrade Technology to Reduce Errors, Or Else…”
  1. Bruce R Nelson says:

    What relly would interest me is finding out WHY CFPB has FAILED to police to now alllegedly criminal OCWEN FINANCIAL of South Florida regarding CFPB entrusting OCWEN to be in charge of settling our recovery claims. I won;t bore you with my ugly story again as I have blabbered much about it on this site. CFPB does not seem to want me to bother them anymore and OCWEN, after telling me in March this year they are “working” on my now over 2 yr unresolved claim ($340K stolen equity) andf you may recall following that letter last March they sent another saing “OPPS< LOOKS LIKE WE LOST OR MISPLACED YOUR RECORD SENT TO US OVER 2 YEARS AGO!" (words to effect. I know I am totally screwed buy Ocwen and now live (or die) with no hope of any recovery. CFPB, the Federal agency responsible for requiring OCWEN to cough up 2 Billio $ simply has lost all control of its duty to police the bad guys (and boy howdy hum if OCWEN ain't filled with bad guys (and gals) then lets gring back A Capone, eh? Also how about some up to the minute of that ugly fat creel, William Embrey. Has he hoisted the mainsail on his yatch compass heading MALTA? Or is our guvment going to arrest him for plotting to evade justice?

    I may never see my money, in fact I know I won't but dear God lets put the mastermind of OCWENs alleged criminal behavior in solitary lock up eating mush for what left of his sorry ass life.

  2. dangeroosdave says:

    Of the companies that have entered consent judgments, Joseph A Smith has been finding errors and filing quarterly reports with the DOJ. Joseph A Smith has broken new trail in monitoring, allowing an acceptable error rate of 1/2% of unlawful activity without penalty. I now go the grocery store, take 1/2% of my groceries, and bag them separately without going through the cash register scanner. After all, I buy thousands of groceries per year, and half these scanners are dirty and don’t work anyway. And the Good Lord knows, my kids need groceries every day!

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