CFPB Uncovers Problem Areas in Mortgage, Debt Collection & Credit Reporting
The Consumer Financial Protection Bureau (CFPB) recently published its Spring 2015 Supervisory Highlights report, outlining the agency’s findings throughout the first forth months of its supervisory efforts in 2015. The agency’s supervisory team found illegal misconduct concentrated in the areas of consumer reporting, debt collection, student loan servicing, mortgage origination, mortgage servicing, fair lending, and remedial actions taken across the consumer financial services sector. These findings can often lead to enforcement actions. Even in cases where the CFPB does not move forward with enforcement, non-public supervisory actions and self-reported violations can be costly, resulting in more than $11 million in remediation paid out over the spring period.
Most troubling, the CFPB found egregious violations of rules against dual-tracking of foreclosures and loss mitigation procedures. In a statement, CFPB Director Cordray said, “We are extremely concerned that one year after the CFPB’s mortgage servicing rules went into effect we are still finding runarounds and illegal dual-tracking.” Agency examiners also found that debt collection complaints from consumers went unanswered, problems with consumer reporting agencies due to a lack of quality control, as well as fair lending violations.
- Supervisory Highlights: http://files.consumerfinance.gov/f/201506_cfpb_supervisory-highlights.pdf
- CFPB Press Release:http://www.consumerfinance.gov/newsroom/cfpb-identifies-illegal-practices-uncovered-through-supervision/