Mortgage Servicing Transfers: Meeting the Operational Demands Associated With Increased Regulations and Scrutiny by the CFPB and Other Agencies

November 20, 2014 1:25pm

Donald C. Lampe

Morrison & Foerster LLP

Camillo T. Melchiorre
President & CEO
Hope LoanPort

Lydia A. Morley
Senior Corporate Counsel
U.S. Bank Law Division

Gene Ross
President LC-Executive Department
LoanCare, A ServiceLink Company

• Increased regulations / scrutiny regarding mortgage servicing transfers?
• How the CFPB’s supervisory and enforcement functions are working together in the mortgage servicing transfer area
• New Nonbank Examination Findings
• New issues with regard to loan ownership transfers and escrow disclosures, transferee servicer requirements, distressed asset sales, repurchase transfer and more
• What do the new CFPB rules require with regard to:
– Managing and addressing consumer risks related to loan servicing transfers
– The submission of pre-transfer “informational plans”
– The staffing and training of employees responsible for    handling servicing transfer communications and processes
• How has the industry responded and what enforcement and/or litigation trends have arisen from these new requirements?
• What supervisory and/or enforcement action has the CFPB been taking against servicers found to have engaged in acts or practices that are unfair, deceptive, or abusive, or that otherwise violate federal consumer financial laws and regulations as they apply to loan servicing transfers? What types of corrective or remedial measures can servicers expect to endure from the CFPB under such circumstances?
• How have the new CFPB servicing rules raised barriers to entry for new servicers?
• What implications have these barriers had (or what implications are they likely to have) on current servicer operations, practices and procedures?
– Employing aggressive growth strategies in light of the lack of   competition
– Managing the increased operational risks that come with
  expanding your business
– Best practices for hiring and training new staff, and
  implementing and maintaining compliance systems/
  internal controls, etc.