Richard Cordray, director of the Consumer Financial Protection Bureau, spoke about the devastating effects of foreclosure in Chicago Wednesday and asked the local community to tell the agency what they "are seeing and how that informs what we should be doing."
Cordray told city residents that feedback will help the CFPB hone in on where the agency's supervision and enforcement teams should place their focus.
"Debt can devastate people's lives," the CFPB director said. "Individual financial problems then become community problems. We saw that quite clearly with the mortgage crisis. The foreclosure epidemic sucked the vitality out of once-vibrant neighborhoods. Vacant properties are not only eyesores, but can become magnets for drugs and crime, and they also lower property tax revenues as they decline in value."
In September, the CFPB noted that its first exams into mortgage servicing firms could result in corrective actions for several businesses, but the names of the firms were not revealed.
The first Consumer Financial Protection Bureau exams into mortgage servicers will result in corrective actions for several firms, according to the bureau director Richard Cordray.
"We have the ability to examine mortgage servicers and send in examination teams. We have been doing that with different servicers. That's been insightful for us. It will lead to corrective actions in a number of instances where they have not been up to snuff," Cordray told a House committee Thursday.
By January, the bureau is expected to finalize rules related to future mortgage servicing standards.