In a July 21, 2013, press release the Consumer Financial Protection Bureau (CFPB) stated it issued a report of even date detailing mortgage servicing problems at banks and nonbanks, which also found that many nonbanks lack robust systems for ensuring they are following federal laws. Below are redacted excerpts from the CFPB press release: 1. The report is available at: http://files.consumerfinance.gov/f/201308_cfpb_supervisory-highlights_august.pdf. 2. The CFPB has authority to supervise nonbanks regardless of size in certain specific markets, including mortgage companies including originators, brokers, and servicers. 3. The report highlights examination work completed between November 2012 and June 2013, which uncovered the following mortgage servicing problems: • Sloppy account transfers: The rights to manage a loan are frequently bought and sold among servicers. With these transfers among institutions, the CFPB discovered the following risks: â—¦Disorganized and unlabeled paperwork, including loss mitigation documents; Download complete memorandum below
