Picking apart the subprime mortgage crisis, one industry was found particularly plagued with consumer protection problems—the mortgage servicers.
The Consumer Financial Protection Bureau (CFPB) recently proposed a new set of rules for mortgage service companies, designed to help homeowners better manage their loans.
“For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in distress,” said CFPB director Richard Cordray in a statement. “It’s time to put the ’service' back in mortgage servicing.”
For better or worse, mortgage servicers can play a big role in homeowner finances. But consumers rarely choose their mortgage service company, leaving servicers little incentive to meet their needs. The CFPB says this lack of customer care can have disastrous results, and may even lead to foreclosure.
