On the servicing front the news was grim. Wells revealed that its massive residential servicing portfolio declined in value by 29.4% from the prior period: $8.13 billion at March 31 compared to $11.52 billion at yearend.
Attorneys have cautioned mortgage servicers about the potential fair lending risks that may arise from their handling of forbearance and loan-modification requests due to the pandemic.
Federal and state financial regulators will adopt a flexible supervisory and enforcement approach regarding certain communication requirements under mortgage servicing rules during the pandemic period.
Overall consumer complaints filed with the CFPB increased in 2019, driven by a double-digit jump in gripes regarding credit reporting. However, mortgage-related criticisms continued to decline.
Democratic senators criticized the CFPB’s response to the economic pain caused by COVID-19 as “tepid and inefficient.” Meanwhile, the bureau’s former director, Richard Cordray, outlined his suggestions.
The CFPB and other federal financial regulators last week reminded servicers and lenders of consumer protection requirements in updated guidance on loan modifications, while giving broad discretion to implement prudent modification programs.
The Comptroller of the Currency is moving forward with its plan to modernize the Community Reinvestment Act despite calls for a delay due to the coronavirus.
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