Skip to main content

Acting CFPB Director Draws Concerns About Mortgage Servicer Actions During COVID-19

Feb 01, 2021
CFPB Logo
Director of Events

In a letter outlining the Consumer Financial Protection Bureau's upcoming priorities, Acting Director Dave Uejio, wrote that the bureau would be focusing on relief for folks who are still struggling during the COVID-19 pandemic and racial equity. However, his letter outlines concerns on the mortgage servicing side that were brought to his attention in Supervisory Highlights findings.

"As you know, protecting economically vulnerable consumers is core to the mission of the CFPB and a key reason why the agency was created," said Uejio in his letter. "One thing we can do immediately is focus our supervision and enforcement tools on overseeing the companies responsible for COVID relief. I am concerned about the findings described in last week’s Supervisory Highlights edition that companies are failing to properly administer relief through the crisis."

According to Uejio's letter, "mortgage servicers gave consumers incomplete and inaccurate information about CARES Act forbearances, failed to process forbearance requests and collected and assessed late fees despite having approved forbearances."

Uejio added that servicers also withdrew money even though consumers were in deferment. He states that such actions harm consumers who are already suffering from financial hardships brought forth by the COVID-19 pandemic. Uejio also stated that the CFPB will take aggressive action to ensure that regulated companies follow the law and meet obligations to assist consumers as the pandemic continues.

"I have directed SEFL to always determine the full scope of issues found in its exams, systemically remediate all of those who are harmed, and change policies, procedures, and practices to address the root causes of harms," said Uejio. "For the Prioritized Assessments that do not already do this, I want Supervision to follow up to ensure it is done, without conducting new follow-up exams. Companies that have not already received instructions from our examiners should expect to receive letters in the mail soon."

He added that in some cases, penalties may be necessary.

Click here to read the full letter from Acting CFPB Director Dave Uejio.

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Feb 01, 2021
HUD Freezes Foreclosures On FHA Mortgages In Texas Flood Zone

Kerr County homeowners among hardest hit in disaster that’s claimed more than 100 lives

Jul 09, 2025
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions