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.
HMDA data submission due date; CFPB appeals Ocwen win in servicing misconduct case; new requirements for Minnesota reverse mortgage servicers; Tech Sprint presentations.
The combined entity will be a more diversified commercial mortgage real estate investment trust, with assets expected to reach $1 billion when fully invested.