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The Consumer Financial Protection Bureau (CFPB) has issued a statement claiming that some mortgage servicers were in violation of federal laws “by failing to provide struggling borrowers with legal protections.”
In the Spring 2017 edition of the agency’s “Supervisory Highlights” report, the CFPB did not identify which servicers were supposedly running afoul of the law, nor did it cite the depth and scope of financial stress created by these actions. But the agency insisted that some servicers either failed to provide borrowers with information on foreclosure alternatives, prematurely launched the foreclosure process, mishandled escrow accounts and offered incorrect periodic statements. The CFPB also took student loan servicers to task for alleged problems in their business practices.
“We found that some mortgage and student loan servicers are violating the law by failing to provide protections to borrowers,” said CFPB Director Richard Cordray. “Their slipshod practices are putting borrowers at risk of financial failure and we will hold them accountable."
