What CFPB's Harsh Words to Servicers Mean for Banks
February 21, 2014

The Consumer Financial Protection Bureau's crackdown on mortgage servicers' operations will increase the pressure on lenders to improve their processes, paperwork and communications with borrowers. National Mortgage News journalists discuss how both banks and nonbank servicers can get ahead of the new regulatory scrutiny.

Comments (2)
Non-bank servicing companies generally ignore any common sense approach to negotiating settlements. They do not understand local RE markets, nor do they make any effort to reasonably account for local differences. In short sales particularly, the experience working witgh a loan servicing company is gestapo-like. Non-bank servicing companies typically take six months to reach a settlement and all the administrative work is done by homeowners. The CFPB has made no attempt to corral the arrogant and obnoxious manner that servicing companies approach homeowners in financial distress. No one from Senators to banking officials can explain what loan servicing companies do that can take so long. Everything I read blames homeowners for incomplete documents if a settlement fails, yet servicing companies repeatedly ask for the same documents claiming that necessary documents were not sent even though irrefutable evidence exists that the data was sent and received by the loan servicers. The loan servicing companies use the lack of documentation as a reason for their internal delays and organizational incompetence. Loan servicers are blatantly dishonest in their dealings with homeowners. They harass and intimidate homeowners in the hopes of ruining the homeowner's financial future. Loan servicing companies take this approach because they can and there are no restraints or penalties for illogical and damaging, ignorant decisions that they make.
Posted by Paul C | Friday, February 21 2014 at 8:18PM ET
If you'd truly like to get some insight on why the servicers like Safeguard Properties (SGP) do not "regulation" speak with the Boots on the Ground Companies that finance the resources and the labor to complete services in the field. Companies like SGP do not want any regulated as this would expose the violations of independent contractor/employee rules, the double billing, insurance fraud, illegal back charging, in addition to the graft and Fraud in the Inducement that is rampant in the foreclosure industry. If you'd like to get some serious insight look at a couple industry Blogs...Aladay LLC and Foreclosurepedia...You'll find a bevy of News at 11 information for stories...
Posted by Aaron A | Friday, February 21 2014 at 10:57PM ET
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