Chairman Johnson, Ranking Member Crapo, and members of the Committee: I am honored to be here once again as the nominee to serve as the Director of the Consumer Financial Protection Bureau.
Consumer Financial Protection Bureau Warns Mortgage Servicers About Legal Protections for Consumers When Transferring Loans
When handing over the processing of loans, mortgage servicers should not lose paperwork, lose track of a homeowner’s loss mitigation plans, or hinder a consumer’s chances of saving their home from unnecessary foreclosure.
Today, the Consumer Bureau is announcing new mortgage servicing rules that will help all borrowers, especially those facing foreclosure. Our rules will provide a fairer and more effective process for troubled borrowers who face the potential loss of their homes.
The CFPB’s mortgage servicing rules ensure that borrowers in trouble get a fair process to avoid foreclosure. Borrowers shouldn’t have to worry about mortgage servicers cutting corners or losing applications for relief.
“These proposed rules would offer consumers basic protections and put the Ôservice’ back into mortgage servicing. The goal is to prevent mortgage servicers from giving their customers unwelcome surprises and runarounds.”
But the major failures in this industry demonstrate that all servicers need to meet basic standards of good customer service. So today we are announcing that the Consumer Financial Protection Bureau is proposing important reforms to the mortgage servicing market.
The foreclosure crisis had a devastating impact on median wealth in this community in particular. And now you and everyone else are dealing with a dried-up credit market that is making it especially difficult to secure a home loan.
Written Testimony of Holly Petraeus before the Senate Committee on Banking, Housing and Urban Affairs
First and foremost are the financial concerns of military homeowners.
The No. 1 topic they’ve raised with me is the decline in home values and the frightening prospect that – if their home is underwater – a Permanent Change of Station, or PCS, move will ruin their finances and put their security clearance at risk.
Prepared Remarks by Richard Cordray at Military Permanent Change of Station (PCS) Guidance for Mortgage Servicers Press Conference
We want to make sure that mortgage servicers comply with the laws that prohibit unfair, deceptive, or abusive practices when it comes to a servicemember’s Permanent Change of Station orders, known as “PCS orders.”