Financial Services and Finance
On August 19th, the CFPB released a bulletin outlining expectations for mortgage servicers that transfer loans. According the Bureau, servicers engaged in significant servicing transfers should expect that examiners will require them to prepare and submit informational plans describing how they will be managing the related risks to consumers.
In January 2014, the Bureau’s mortgage servicing rules took effect. Among other things, the rules require mortgage servicers to maintain policies and procedures to facilitate the handover of information when a servicer transfers a loan to a new company. The August 19th bulletin gives examples of some things CFPB examiners will look for when loans are transferred. In particular, the bulletin notes that CFPB examiners will scrutinize transfers of loans with pending loss mitigation applications or approved trial and permanent modification plans.
Read more here.
Read the bulletin here.
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