The settlement would end a class action filed against Sierra Pacific Mortgage for allegedly receiving illegal payments in exchange for referrals of title work.
In the new year, the CFPB will propose changes to its loss-mitigation rules to govern how residential servicers work with borrowers affected by natural disasters and other emergencies.
According to the CFPB, from 2014 to 2018, Seterus failed to handle and process homeowners’ applications for loss-mitigation options. The mortgage servicer was acquired from IBM by Mr. Cooper in 2019.
Mortgage trade groups are asking the CFPB to expressly permit servicers, in the case of escrow shortage, to include a lump-sum repayment option in account statements.
The latest supervisory report from the CFPB found that some servicers violated Regulation X by including a lump-sum repayment option in escrow account statements when mortgagors had a shortage.
The CFPB by and large has agreed that marketing service agreements are permissible. Companies now need to reevaluate that payments for such partnerships are of reasonable market value.
Ocwen Financial has agreed to pay $5.2 million to Florida regulators to settle allegations it engaged in abusive servicing practices. A similar case filed by the CFPB against the nonbank is pending.
The legality of marketing service agreements will now depend on how the MSAs are structured and implemented. But has the bureau’s interpretation really changed?
The appeals court ruled that Freedom Mortgage, as a buyer of mortgage servicing rights, is liable for a missed property tax payment, even though the obligation remains with the original owner for a short period of time under the purchase agreement.
RSS