At this moment, when the CFPB haswarned servicers it is keeping a close eye on them, thedrama with Mr. Cooper over the weekend made me cringe. On Saturday, potentially hundreds of thousands of borrowers had multiple mortgage payments deducted from their bank accounts by Mr. Cooper and, because it was on a weekend, those problems took several days to get resolved.
Some borrowers reported up to seven mortgage payments being pulled, resulting in negative account balances. Angry customers took to social media with a vengeance, which naturally attracted the CFPB's attention. The bureau says it is "taking immediate action" to understand and resolve the situation — clearly bad news for Mr. Cooper.
The CFPB is taking lots of action these days. Yesterday it announced that it was officiallydelaying the compliance deadline for the final QM rule until October 2022. The bureau proposed that delayin March, got negative comments from industry, and proceeded anyway.
Let's remember — the bureau is delaying compliance with its own final rule,issued in December under the former director nominated by Trump, Kathy Kraninger.
The question is what the delay will really accomplish since Fannie and Freddie areforbidden from buying loans with the GSE Patch after July. During the comment period, the Housing Policy Council said it was concerned that the real purpose was to "set the stage for the Bureau to reopen the 2020 General QM Rule. We firmly believe that reopening the 2020 General QM Rule would not be in the public interest…If the Bureau wants to explore modifications to the 2020 General QM Rule, it should follow the standard APA rulemaking process, without delaying the mandatory compliance date."
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