Consumer Financial Protection Bureau (CFPB) examiners have found that many companies in the mortgage servicing industry — especially nonbank firms — are falling short in implementing a wide range of mandates designed to protect consumers from the abuses that came to light in the wake of the "robo-signing" crisis, according to a recent agency report.
The CFPB report noted that many nonbanks, which include loan originators, brokers and mortgage servicers, lack formal policies and procedures that govern how employees were trained and supervised to comply with all federal consumer protection laws.
The report also found that many nonbanks failed to conduct independent audits of their compliance efforts. In all cases where the CFPB found mortgage servicing problems, the agency advised companies to implement remedial measures, and, when appropriate, opened investigations for potential enforcement actions, the agency said in a statement.
Michael Lewis is Managing Editor at the National Notary Association.