Skip to main content

NCLC Survey Finds Issues Remain With Mortgage Servicers

NationalMortgageProfessional.com
May 07, 2015

The National Consumer Law Center (NCLC) conducted a nationwide survey from Feb. 24 to March 3 of more than 100 attorneys and housing counselors representing homeowners. The survey’s results show significant ongoing problems with mortgage servicing. While the CFPB’s mortgage servicing regulations have made important progress in standardizing industry practices, enhancing procedural transparency, and improving servicer accountability, many challenges remain. 

“Despite recent progress, our survey shows that homeowners still face major roadblocks when trying to get help when they face a hardship,” said NCLC Attorney Alys Cohen. “The Consumer Financial Protection Bureau can address these problems by closing loopholes in existing rules and expanding protections for homeowners who face divorce or death of a loved one."

NCLC’s survey examined a number of questions relating to current CFPB mortgage servicing rules to explore the need for further improvements. The results indicate an urgent need for enhanced protections to:

►Help successors in interest (widows, orphans, or other heirs) avoid foreclosure;

Close the loopholes created by the CFPB’s requirement to submit a “complete application” before accessing important mortgage protections; and

Remove the CFPB’s current exemption from servicing protections for so-called “duplicative” applications for loan modifications or other assistance where the homeowner faces a new hardship. 

Additionally, more than half of respondents reported they have had cases where the servicer would not let a widow or other successor apply for a loan modification or receive loan information without providing paperwork that either did not exist or did not apply to the situation. Nearly 70 percent of respondents stated that servicers "often" or "most of the time" ask for additional documents from a homeowner after the homeowner has submitted everything requested by the servicer.

Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021
Verus Title Inc. Expands Into Dallas-Fort Worth Texas

Verus plans to take advantage of the Dallas-Fort Worth market before expanding throughout the state.

Community
Jun 07, 2021
Freddie Mac Multifamily Extends Forbearance Deadline To September

Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021.

Industry News
Jun 04, 2021
Fannie Mae Launches 'Your Own Story' To Educate Future Homebuyers

Fannie Mae is seeking to help demystify the homebuying process for future homeowners with “Your Own Story.” A new campaign to educate future homebuyers on the entire process.

Industry News
Jun 04, 2021