(Jeff Sorg, OnlineEd) – Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), today announced the CFPB is taking its first enforcement action under its new mortgage servicing rules by entering an order against Flagstar Bank for allegedly violating these rules by failing borrowers and illegally blocking them from trying to save their homes. The CFPB’s Flagstar Enforcement Action Press Call released September 29, 2014 states that “Flagstar took excessive time to process borrowers’ applications, did not tell them when their applications were incomplete, denied loan modifications to qualified borrowers, and illegally delayed finalizing permanent loan modifications.” The CFPB alleges these unlawful practices caused many consumers to lose their homes. In January 2014 the CFPB’s new mortgage servicing rules took effect and set out specific rules for handling loss mitigation applications.
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This article was published on September 18, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.