1. The Consumer Financial Protection Bureau (CFPB) issued a “Supervisory Highlights” report that outlined several areas of concern its examiners have had with the new servicing rules. The report said that the bureau’s examiners cited violations based on the lack of, or inadequate, policies and procedures for monitoring third-party service providers and information sharing with vendors. It also found that at least one servicer failed to make trial loan modifications permanent as early as possible and found the delay to be an unfair practice.
Don’t let your institution be cited for the same deficiencies. Allow our former, senior, Federal compliance examiners review your operations to ensure the adequacy of policies and procedures within this and other areas.
2. Servicers of mortgages and student loans have violated consumer laws by engaging in illegal and improper practices such as inflating minimum payments due, according to a report released Tuesday by the CFPB. The report didn’t include names of companies in violation or detail enforcement plans. However, it did emphasize that all borrowers should be treated fairly by loan servicers. The CFPB intends to hold them accountable for how they treat borrowers.
Our former, Federal bank examiners can assist you in determining if your practices in these areas are fair and in compliance with applicable laws and regulations.
3. At the University of Michigan Law School, CFPB Director Richard Cordray discussed the necessity of reforming financial law to keep pace with innovations in the financial marketplace. Director Cordray referred to “the four D’s”, obstacles faced by consumers in financial markets, which are ‘deceptive marketing, debt traps, dead end markets and discrimination.’
Don’t get caught being labeled as practicing one or more of four D’s. Our in-house, former Federal regulators can provide support in establishing effect policies and procedures at your institution.
