It’s been the mortgage industry’s worst kept secret for weeks now, and according to Reuters, the CFPB crackdown on mortgage servicers just got real.
The CFPB has opened probes into a handful of mortgage servicers over their handling of forbearance requests, three other people with knowledge of the matter tell Reuters.
The probes could result in stiff penalties for those mortgage servicers found to have hurt borrowers, the article states. The CFPB issued a warning to servicers and now it is beginning to add bite to its bark.
“We are very concerned and we're watching closely,” said one of the people. “Our supervision team is robustly asking for more data than ever from servicers.”
The effort underscores the tougher stance the new Democratic leadership of the consumer watchdog is taking towards the financial industry as it executes President Joe Biden's priorities to help Americans recover from the pandemic, boost fair housing and address systemic racial injustice.
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