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.”

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