Mortgage Nonbanks: The CFPB is Watching You

Recently we reported that the Consumer Financial Protection Bureau was auditing three large nonbank mortgage lenders, three of which are based in California. (We’re working on getting confirmation and asking those firms if they could share their experiences with us.) But rest assured, the CFPB will get around to auditing just about every nonbank lender of any decent size. But will it release those audits to the public – or will inquiring minds need to file a Freedom of Information Act request? Meanwhile, mortgage analyst Joe Garrett recently told his clients this: “Even if the CFPB hasn't contacted you about scheduling an exam, it's quite possible that they are monitoring you. They have stated that they will, to the extent possible, use existing information, including exams by state regulatory bodies, your HMDA reports, lawsuits filed on behalf of consumers, consumer complaints filed with the CFPB, newspaper articles, web postings, Neighborhood Watch Scores, lenders' websites, and your loan volume. Oh yes, they are watching you.”