CFPB secures $107 million in relief for consumers

Outlines compliance violations of originators, servicers

The Consumer Financial Protection Bureau’s supervisory actions resulted in $107 million in relief to more than 238,000 consumers, according to the ninth edition of its Supervisory Highlights.

The report outlines the illegal practices uncovered by the bureau’s examiners from May 2015 to August 2015. Check here for coverage over the CFPB’s eighth edition.

During this period, the bureau found violations in the student loan servicing, mortgage origination and servicing, consumer reporting, and debt collection markets.

“Our supervisory activities in the past few months have returned $107 million to hundreds of thousands of harmed consumers,” said CFPB Director Richard Cordray.

“Borrowers should not be mistreated when trying to repay their loans. We will continue to shine light on the problems we observe in areas such as servicing, consumer reporting, and debt collection, and hold companies accountable when they do not treat borrowers fairly,” said Cordray.

For mortgage originations, while examiners have found that supervised entities in general effectively implemented and demonstrated compliance with the rule changes, they did find some instances of non-compliance with certain Title XIV rules.

In addition, there were findings of violations of disclosure requirements pursuant to the Real Estate Settlement Procedures Act, implemented by Regulation X; the Truth in Lending Act, implemented by Regulation Z; and consumer financial privacy rules, implemented by Regulation P.

On the other side, servicer violations improved. The bureau said that while it is concerned about the range of legal violations identified at various mortgage servicers, it also recognizes efforts made by certain servicers to develop an adequate compliance position through increased resources devoted to compliance.

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