CFPB Flexes Creative Muscles In Mortgage Servicer Sanction

Law360, New York (October 2, 2014, 7:52 PM EDT) -- The Consumer Financial Protection Bureau made good this week on its promise to clamp down on mortgage servicers it finds sloppy and abusive, but its fine against Flagstar Bank FSB also featured some creative sanctions that could cause headaches for other banks and servicers.

On Monday, the CFPB announced it had taken action against the Michigan-based savings bank and mortgage servicer after finding it had failed thousands of borrowers who attempted to access its foreclosure relief program but were stymied by delays and errors that, in...
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