CFPB reports that mortgage servicers' technology failures cause violations of servicing rule

A new Consumer Financial Protection Bureau supervision report finds that some mortgage servicers continue to use failed technology that has already harmed consumers, putting those companies in violation of the CFPB’s new servicing rules.

In its examinations covering numerous mortgage servicers since the new CFPB rules took effect in January 2014, CFPB examiners have found violations because of deficient technology and process breakdowns. Specifically, examiners have observed problems with loss mitigation and servicing transfers. To spur industry in its general compliance with CFPB rules, the Bureau today is also releasing an updated mortgage servicing exam manual.

The CFPB's press release is here. The report is here.