CFPB Puts Mortgage Servicers On Notice Over Doc Handling

Law360, New York (February 11, 2013, 10:20 PM EST) -- Concerned over the rising volume of mortgage servicing transfers and mismanagement of consumer documents in the process, the Consumer Financial Protection Bureau said Monday that it is focusing on transfer-related problems and issued new guidance to servicing companies.

The bureau's bulletin advised mortgage companies as to their legal obligations when handing over the processing of loans to another entity, and it warned that it will take action if it finds violations, such as lost paperwork, according to a statement.

“Consumers should not be collateral damage in...
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