CFPB Outlines Servicing Supervision Plans

CFPB Outlines Servicing Supervision Plans The Consumer Financial Protection Bureau (CFPB) has outlined its initial approach to supervising mortgage servicers to ensure they comply with federal consumer financial protection laws.

The Mortgage Servicing Examination Procedures released by the CFPB describe the type of information that the agency's examiners will gather to evaluate mortgage servicers' policies and procedures, assess whether servicers are in compliance with applicable laws and identify risks to consumers in servicing operations. The CFPB will be conducting examinations of mortgage servicing practices as part of its supervision program.

The bureau adds that the Mortgage Servicing Examination Procedures are a part of the more comprehensive CFPB Supervision and Examination Manual, which was released at the same time. The broader manual is the field guide for examiners to be used in supervising both depository institutions and other consumer financial services providers.

The CFPB has authority to examine the more than 100 large banks, thrifts and credit unions that have assets over $10 billion, as well as their affiliates.

‘Mortgage servicing has a huge impact on consumers and is a priority for the CFPB,’ says Raj Date, special advisor to the Secretary of the Treasury on the CFPB. ‘The mortgage servicing market has been bogged down by widespread reports of pervasive and profound consumer protection problems. We are going to take a close and measured look at whether servicers are following the law.’

The Mortgage Servicing Examination Procedures are available online.

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