The Federal Trade Commission and the Consumer Financial Protection Bureau have entered into a memorandum of understanding to coordinate investigations and law enforcement actions while avoiding duplication.
In some cases, the two agencies will conduct joint investigations of mortgage firms.
The goal of the agencies is to both protect consumers from mortgage abuses, and to avoid placing an undue burden on the industry.
Presently, the FTC has ongoing investigations of several residential servicers, including Ocwen Financial Corp. (The somewhat new CFPB is preparing to initiate examinations of several non-bank servicers.)
FTC and CFPB officials plan to consult regularly and inform the other prior to initiating an investigation or enforcement action.
“The FTC has always been committed to protecting consumers and legitimate companies from bad actors in the financial marketplace,” said FTC chairman Jon Leibowitz. "Now we have another cop on the beat, and this agreement ensures that businesses will not be double-teamed by the two agencies.”
Entering into this agreement will ensure "efficient and effective federal government oversight” of consumer financial products, according to CFPB director Richard Cordray.
Back in September, an FTC official told a Mortgage Bankers Association conference the agency is investigating several servicing shops for abusive practices, including Ocwen, which is based in W. Palm Beach, Fla.
“We are continuing to cooperate with the FTC in producing the data and information that they have requested,” Ocwen general counsel Paul Koches told National Mortgage News on Monday.
Over the past two years Ocwen has been a net buyer of MSR contracts and recently agreed to buy Saxon Mortgage, a somewhat large nonprime servicer.
