After four years of relative quiet, the rapid ramp-up of the CFPB under Biden is enough to make my head swim. For the second time in just two days, the CFPB has put the mortgage industry on notice that it is ready, willing and able — even eager — to take aggressive enforcement action to protect consumers.
Yesterday, the Bureaurescinded 7 of the flexibilities it allowed during the pandemic, including policies around reporting data and appraisals. Today, it warned servicers that when it comes to managing borrowers coming out of forbearance, "unprepared is unacceptable."
"There is a tidal wave of distressed homeowners who will need help from their mortgage servicers in the coming months. Responsible servicers should be preparing now. There is no time to waste, and no excuse for inaction. No one should be surprised by what is coming," said CFPB acting Director Dave Uejio.
Most servicers, of course, started shoring up policies, adding staff, redesigning workflows and generally prepping for Armageddon this time last year as CARES Act forbearance was rolled out. They've already assisted millions of borrowers as they exited COVID-related forbearance and there's no evidence servicers have had a laissez-faire attitude about the task ahead.
Still, the warning from the CFPB is not to be taken lightly. Underwriters might need to make some room at the lunch table — compliance teams are once again the cool kids.
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The average U.S. mortgage rate remained essentially unchanged last week, rising by just one basis point to 3.18%, according to Freddie Mac's Primary Mortgage Market Survey.
HW+ Managing Editor Brena Nath joins Proctor Loan Protector executives Damon Laprade and Mike Dimas to discuss the acquisition and the new brand, Proctor Loan Protector. Presented by Proctor Loan Protector
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