According to a report released by the Consumer Financial Protection Bureau, mortgage servicing issues continue to be a significant problem despite the efforts of a renewed focus after the foreclosure crisis.
"The agency specifically cited 'sloppy' and 'poor' practices related to mortgage transfers, payment processing and loss mitigation procedures. Although most of the focus to date has been on bank-owned mortgage servicers, the largest of which have signed settlement agreements with federal and state authorities pledging to improve their systems, the report said nonbanks also lacked adequate compliance management systems," writes American Banker's Rachel Witkowski.
"Today's report highlights both the mortgage servicing problems throughout the industry and the challenges of making sure that nonbanks are following federal law. Fixing both is a priority for us," said CFPB Director Richard Cordray in a press release.
Since the CFPB, created under the Dodd-Frank Act, first started examining financial institutions, mortgage servicing has been a main concern for the agency.
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