State regulators want to work with the Consumer Financial Protection Bureau to ensure servicing transfers don’t disrupt loss mitigation efforts and harm troubled homeowners.
“Large-scale servicing transfers represent a timely consumer protection issue,” according to the Conference of State Bank Supervisors and American Association of Residential Mortgage Regulators.
“Similar to CFPB’s findings, CSBS and AARMR have identified potential for consumer harm when loans are transferred during the loss mitigation process,” according to a joint press release.
The state regulators have jurisdiction over state banks and nonbank servicing companies.
CSBS and AARMR “strongly encourage” state-supervised servicers to become familiar with the CFPB guidance on servicing transfers.