U.S. consumer bureau investigating mortgage servicing problems
The U.S. consumer watchdog said on Wednesday it has found problems with mortgage servicing at banks and other financial firms, and in some cases has launched investigations for possible enforcement actions.
Mortgage servicers have made mistakes including sloppy payment processing, poor communications with consumers and insufficient programs to ensure compliance with federal laws, the Consumer Financial Protection Bureau said in a report.
The CFPB did not name any specific firms.
When the bureau's examiners found problems, they alerted the companies and "when appropriate, opened CFPB investigations for potential enforcement actions," the bureau said in a statement.
The consumer bureau was created by the 2010 Dodd-Frank law and given oversight of consumer products including mortgages and credit cards.
Problems with servicing have been a focus for regulators since the 2007-2009 financial crisis, when poor communication with borrowers and such as "robo-signing" foreclosure documents contributed to millions of people losing their homes.
(Reporting by Emily Stephenson; Editing by David Gregorio)