Examiners will review “whether the servicer has an adequate process for expedited evaluation of complaints or information requests from borrowers facing foreclosure,” the CFPB said, adding that an appropriate complaint escalation process is “essential” to a compliance management system. Meanwhile, the bureau said
the CFPB is conducting targeted reviews of mortgage servicers’ compliance with fair lending laws. This includes looking at those servicers that are creditors, such as those that participate in a credit decision about whether to approve a mortgage loan modification.
The bureau also released a special edition of its Supervisory Highlights publication focused on servicing. It noted multiple instances where borrowers received late or incorrect information about loan modifications due to technological breakdowns and where borrowers faced runarounds following servicing transfers between companies with incompatible computer systems.
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Read Supervisory Highlights.