Warren asks CFPB to scrutinize mortgage servicers

by Ryan Smith12 Apr 2016
Elizabeth Warren is calling for the Consumer Financial Protection Bureau to exercise even more oversight on nonbank mortgage servicers.

Warren (D-Mass.) along with Sen. Elijah Cummings (D-Md.) asked the CFPB on Monday to identify and collect more data on nonbank servicers, according to a report by The Hill.

Warren and Cummings asked the CFPB to follow recommendations in a report by the Government Accountability Office, The Hill reported. The GAO’s report was the result of a study that Warren and Cummings requested.

The report found that 25% of all mortgages were serviced by nonbanks in the second quarter of 2015 – nearly four times as many as nonbanks serviced in 2012, according to The Hill. The report also found that many nonbank servicers lacked the resources to effectively handle “regulatory compliance, risk and internal controls.”

The report recommended that the CFPB develop a way to identify and track all nonbank servicers.

“Collecting information and regulating nonbank mortgage services to protect consumers is well within the CFPB’s statutory authority and core mission,” the senators wrote to CFPB Director Richard Cordray. “We hope that you take actions to do so as rapidly as possible.”


  • by Amused | 4/12/2016 11:21:13 AM

    In business classes a few decades from now the students will learn the irony of Mrs. Warrens crusade to "save consumers ". This coo mentor suspects she is just another politician with a large ego and a leaning towards narcissistic personality traits. Her continual actions in attacking the mortgage sector illustrate this irony. Yes, non banks cannot comply with all the regulations. But this isn't for lack of want nor for lack of trying, instead it is due to folks like Mrs. Warren who continue to create unrealistic hurdles for any non bank entity to achieve and be profitable. The irony is that the very banks that created the melt down that lead to the CFPB being created are being given a huge advantage because the non banks or smaller community banks will never gain enough scale to comply and be productive today. This will lead to an exodus of smaller banking platforms and will create a dirty of new entrants. Furthermore, the larger banks due to Basel + regulations have decided to reduce their footprint in mortgages. This will only exacerbate as rates rise and their NIMs widen.

  • by Amused | 4/12/2016 11:23:08 AM

    Sorry meant to say Dirth of new entrants not dirty.

  • by Cheryl M | 4/12/2016 12:40:55 PM

    Perfectly said Amused. It baffles me that these "crusaders" move on from the Bank servicers when those issues have yet to be resolved for consumers. Yesterday's articles show politicians wanting principle reduction and asking the government help....So Warren "leaves us hanging" again. How about going back to the Safe act and having NMLS lic. for all having the same requirements. The playing field never evens out for our Politicians. It's easy to move on and leave things open ended/unfinished. Do they really think we don't notice? I'll say it again...Warren needs to go back to the private sector to Bankruptcy Lawyer...did she leave clients hanging then too?


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