CFPB Takes First Enforcement Action Under New Mortgage Servicing Rules

(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.

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About Jeff Sorg

Jeff Sorg is a co-founder of OnlineEd®, an online real estate, mortgage broker, and vocational school founded in 1997, where he also serves as Chief Executive Officer, and School Director. Sorg holds vocational and post-secondary school instructor licenses in several states and has authored numerous real estate continuing education and pre-licensing courses and has been awarded the International Distance Education Certification Center's CDEi Designation for distance education. Memberships include ARELLO (Association of Real Estate License Law Officials), the National Association of REALTORS®, Oregon Association of REALTORS®, and Portland Metro Association of REALTORS®. Awards and service include REALTOR® Emeritus in the National Association, Life Member award in Portland Metro Association and Chairperson of the Oregon Real Estate Forms Committee. OnlineEd® provides real estate, mortgage broker, insurance, and contractor pre-license, post-license, continuing education, career enhancement, and professional development and designation courses over the Internet.