Mortgage servicers face CFPB corrective action

The first Consumer Financial Protection Bureau exams into mortgage servicers will result in corrective actions for several firms, according to the bureau director Richard Cordray.

“We have the ability to examine mortgage servicers and send in examination teams. We have been doing that with different servicers. That’s been insightful for us. It will lead to corrective actions in a number of instances where they have not been up to snuff,” Cordray told a House committee Thursday.

The exams began in February. The bureau looks at how servicers are complying to existing federal laws and will identify risks of possible violations. The CFPB also takes into account how consumer complaints and loan transfers are handled.

A bureau spokesperson said the firms that had undergone exams so far would be kept confidential.

Read on.

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