Mortgage Services and Lenders may be Engaging in Deceptive Practices, according to CFPB

The Consumer Financial Protection Bureau (CFPB) has found that mortgage servicers unfairly delayed borrower requests for enrollment in loss mitigation options, causing significant harm. These delays, based on incomplete applications, led to prolonged delinquency, late fees, default notices, negative credit reporting, and time wastage. The borrowers couldn’t avoid these harms as servicers controlled application processing, and the CFPB determined these practices offered no benefits to consumers or competition.

Reports show that lenders also issued untrue threats about collecting debts, falsely asserting their power to seize borrowers’ wages, even though they lacked such authority to do so. In some instances, the lender actually made an unauthorized wage deduction by sending erroneous notices to consumers’ employers, wrongly indicating that the employer was obliged to pay the lenders the full amount of the consumer’s loan balance from the consumer’s wages.

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Have you had any of the above happen to you? Have you run into issues with mortgage servicers unfairly delaying borrower requests, with these delays leading to late fees, time wastage, negative credit, etc? Let us know! Fill out the attached form and contact the Shub & Johns team today or please contact us at 610-477-8380 or [email protected].

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