Earlier this year, the
Consumer Financial Protection Bureau (CFPB) reported that some mortgage servicers were violating the new servicing
rules with their continued use of failed technology, which harms customers.
The problems were specifically found in loss mitigation and servicing
transfers, but the CFPB was adamant in stating that these mortgage servicers
cannot hide behind outdated systems and that the rules must be enforced
The combination of mortgage servicers’ poor recordkeeping and bad
practices contributed to other growing issues as millions of borrowers
were falling behind, which resulted in the new rules that the CFPB enacted
over two years ago. The new rules were meant to ensure that mortgage servicers
kept accurate records and made pertinent services more accessible to borrowers.
Unfortunately, the recent report showed that many servicers were still
using deficient technology and even lacked proper training, all of which
pose risks to customers. The faults in their technology also resulted
in late loan modification notices, distribution of incorrect or misleading
information, and other egregious failures in services.
Sulaiman Law Group, LTD provides a team of skilled attorneys who have helped
countless individuals find relief from
debt, fight against
creditor harassment, and provided high-caliber legal services to those living in fear of losing
their home to
foreclosure. Call us today for an initial case evaluation at