Mortgage Servicers Cannot Hide Behind Outdated Technology

MORTGAGE SERVICERS ARE VIOLATING CFPB RULES DUE TO ONGOING TECHNOLOGY FAILURES AND PROCESS BREAKDOWNS

Consumer Financial Protection Bureau (CFPB) released a special report focused on mortgage servicers. The report found that some mortgage servicers continue to use failed technology that has already harmed consumers.
Mortgage servicers bully innocent homeowners.
According to the CFPB Mortgage servicers are responsible for collecting payments from the mortgage borrower and forwarding those payments to the owner of the loan. They handle customer service, collections, loan modifications, and foreclosures. Even before the financial crisis, the mortgage servicing industry at times experienced problems with bad practices and sloppy recordkeeping. As millions of borrowers fell behind on their loans because of the crisis, many servicers were unable to provide the level of service necessary to meet homeowners’ needs.
“Mortgage servicers can’t hide behind their bad computer systems or outdated technology. There are no excuses for not following federal rules,” said CFPB Director Richard Cordray. “Mortgage servicers and their service providers must step up and make the investments necessary to do their jobs properly and legally.”
According to the CFPB problems with the mortgage servicers include:

• Information about loan modifications is late, incorrect, or deceptive due to technological breakdowns or malfunctions.
• Consumers get the runaround when loans transfer to a new servicer with incompatible computer systems

Read the full report….
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