Lawmakers are trying to push the CFPB to reconsider the delay in the mandatory compliance date of the general qualified mortgage rule, urging the bureau instead to commit to a longer-term approach to monitoring the broader implications of lending under the rule.
Mr. Cooper has laid the blame squarely on its electronic payments vendor. But, according to legal experts, the lender/servicer could still be on the hook for any statutory or actual damages under the Electronic Fund Transfer Act.
Legal experts believe the CFPB’s findings are “warning shots” to servicers. That means the bureau is investigating how servicers are treating borrowers and will initiate enforcement actions if it finds issues.
Wells Fargo, the nation’s largest servicer that until recently ranked on the top of the complaint list, dropped to third position in the first quarter of 2021.
The New Jersey-based lender will pay $140,000 to settle CFPB charges that it misinformed consumers about the costs and risks involved with reverse mortgages. It marks the first significant regulatory action against a reverse mortgage firm under the Biden administration. More to come?
It looks like the CFPB is willing to question long-standing ways of doing business that have withstood prior legal scrutiny, according to an attorney tracking the bureau’s enforcement activity.