- CFPB Issues Fall 2014 Supervisory Highlights Report
- November 28, 2014 | Authors: Peter L. Cockrell; Brett M. Kitt; Gil Rudolph; J. Scott Sheehan
- Law Firms: Greenberg Traurig, LLP - McLean Office ; Greenberg Traurig, LLP - Washington Office ; Greenberg Traurig, LLP - Houston Office
On October 30th, the CFPB issued its Supervisory Highlights Report. This is the fifth edition of the Report and generally covers CFPB supervisory activities between March and June 2014. The Report highlights problems in two specific markets: student loan servicing and mortgage servicing.
The Office of Supervision observed that some student loan servicers subject to its oversight had violated the law by: (1) misrepresenting minimum payment amounts to borrowers; (2) allocating loan payments in a manner that maximized late fees; (3) charging illegal late fees; (4) failing to provide borrowers with accurate tax information; (5) misleading borrowers about bankruptcy protections; and (6) making debt collection calls to borrowers at “inconvenient times.”
The Office of Supervision also discussed its findings that mortgage servicers had violated the law by: (1) failing to properly oversee their service provides; (2) unfairly delaying permanent loan modifications; and (3) deceiving consumers about the status of their permanent loan modifications.