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CFPB slaps country’s biggest credit union with $27.5 million penalty

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Mortgage Professional America | 18 Oct 2016, 08:15 AM Agree 0
The agency took action against Navy Federal Credit Union for allegedly making false threats and cutting off account access to delinquent mortgage customers
  • TK66 | | 18 Oct 2016, 11:56 AM Agree 0
    Great! So now instead of just threatening action they will take it and really mess up their lives. Did I miss something? We are talking about people that didn't make their payments correct?
  • Frustrated with the Feds | | 18 Oct 2016, 12:12 PM Agree 0
    Let me see if I have this correct.........Navy Federal only threatens to take action against members who were NOT paying their debts, but didn't actually do anything and now they have to give a payout to those members who were not paying their debts. When is this country going to have enough of the CFPB? Even though NFCU only threatened it, contacting their commanding officers and getting their security clearance revoked is actually a intelligent move in today's world. Dept of Defense employees with access to sensitive materials and bad credit or mounting debts they cannot pay are at greater risk to sell information to the wrong people in exchange for money. I am not saying everyone with bad credit is treasonous, but everyone should be expected to pay their debts........this action the CFPB has taken only encourages people to not pay their bills and then expect the creditors to compensate them for their poor decision making skills. It is absolutely infuriating. When is this madness going to stop?
  • Michele | | 18 Oct 2016, 01:18 PM Agree 0
    Wow...what happened to ethics? Yes, these people didn't make a payment. But to threaten their jobs? Lie about what could be done? How does that make Navy Federal right? I don't like the CFPB either. But in this case Navy Federal was over the line and deserved some kind of punishment.
  • | | 18 Oct 2016, 01:23 PM Agree 0
    If you can't play by the rules get out of the game.
  • CFPB is unconstitutional | | 18 Oct 2016, 04:08 PM Agree 0
    ...sure, let's all play by the rules set forth by one of the most ridiculously powerful, out-of-control regulatory agencies ever created. How about we change the rule makers, instead?
  • Chris | | 18 Oct 2016, 08:37 PM Agree 0
    Aren't credit unions non profit organizations? Won't the penalty be paid by the other members? So the people that do pay their bills on time now have to cover the fine and pay the people that don't? Doesn't make sense.
  • Griff | | 19 Oct 2016, 11:32 AM Agree 0
    Well, there is probably a wealth of issues with credit unions. They have operated differently than regular banking entities forever. I had a borrower who purchased a home, I offered her a variety of programs and she chose a 30 yr fixed because it was most affordable. A few weeks after closing she went to her credit union to refi her car and ended up with a refi on her mortgage to a 15 year note with the exact same interest rate as the 30 year note. Fortunately I got a heads up and called her to discuss before she closed. She had no idea what her interest rate was, no idea of closing costs and the credit union deducted $350 from her account for an appraisal with her having signed not one single document for a mortgage, zero disclosures. All this woman knew was the bi weekly payments. This makes me believe they operate with far less scrutiny than someone like a mortgage broker.

    Credit unions can make it easier, but perhaps are not always the best solution for a borrower. Having said this I would love one in my neighborhood for my checking and savings and maybe a car mortgage.
  • Logan | | 20 Oct 2016, 01:12 PM Agree 0
    The mortgage industry as we all know as laws. For mortgage making and mortgage servicing. Such as the Privacy Act etc. When a borrower becomes delinquent there are steps to be followed. If the steps are not followed according to the law, then you can end up with illegal foreclosures yadda yadda. It's not rocket science to figure out based on the article that Navy Federal Credit Union was out of line. At that point it doesn't matter that the borrower was delinquent it is about how that borrower's mortgage was serviced. The answer is poorly. Shame on Navy Federal. I and many others have spent our careers helping people be successful homeowners through proper servicing of mortgages. Yes Michelle back to your question. What happened to Ethics?
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