State Agencies Cite Nonbank Servicers, Raise Compliance Concerns About Market Shift to Purchase Mortgages
July 6, 2017
Compliance issues involving nonbank servicers remain an ongoing problem, according to new reports from state regulators. And the regulators raised concerns about how a shift by lenders to purchase mortgages increases compliance risks. “The increase in transfers of mortgage servicing rights to non-depositories in recent years has stressed these servicers’ sometimes inadequate operating systems and infrastructures, requiring greater regulatory attention,” the Multi-State Mortgage Committee said in a report to state regulators. The MMC was established by state regulators to supervise multi-state nonbank mortgage entities. Eight mortgage-related exams were...