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Home » Store » Supervision & Examination » Examiners Continue to Find Mortgage Servicing Failures

Examiners Continue to Find Mortgage Servicing Failures

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Supervision & Examination

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An undisclosed number of mortgage servicers continue to drop the compliance ball, according to the latest supervisory highlights report from the CFPB, issued last week. “In recent exams, examiners found that one or more servicers received incomplete loss mitigation applications and pre-approved borrowers for short-term payment forbearance programs based on those applications,” the report noted. “However, the servicer(s) did not notify borrowers of their right to complete the application and did not separately request other information needed to evaluate for all the other loss mitigation options offered by the owner or assignee of the loan.” Also, as the modification program neared its end, and before the short-term payment forbearance period concluded, the servicer(s) failed to reach out to affected borrowers ...
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