{"id":57740,"date":"2024-07-03T03:03:19","date_gmt":"2024-07-03T01:03:19","guid":{"rendered":"https:\/\/housesmarketplace.com\/cfpb-order-against-reverse-mortgage-servicers-could-have-wider-implications\/"},"modified":"2024-07-03T03:03:19","modified_gmt":"2024-07-03T01:03:19","slug":"cfpb-order-against-reverse-mortgage-servicers-could-have-wider-implications","status":"publish","type":"post","link":"https:\/\/housesmarketplace.trio-tv.com\/ru\/cfpb-order-against-reverse-mortgage-servicers-could-have-wider-implications\/","title":{"rendered":"\u041f\u0440\u0438\u043a\u0430\u0437 CFPB \u043f\u0440\u043e\u0442\u0438\u0432 \u043e\u0431\u0441\u043b\u0443\u0436\u0438\u0432\u0430\u044e\u0449\u0438\u0445 \u043a\u043e\u043c\u043f\u0430\u043d\u0438\u0439 \u043f\u043e \u043e\u0431\u0440\u0430\u0442\u043d\u043e\u0439 \u0438\u043f\u043e\u0442\u0435\u043a\u0435 \u043c\u043e\u0436\u0435\u0442 \u0438\u043c\u0435\u0442\u044c \u0431\u043e\u043b\u0435\u0435 \u0448\u0438\u0440\u043e\u043a\u0438\u0435 \u043f\u043e\u0441\u043b\u0435\u0434\u0441\u0442\u0432\u0438\u044f"},"content":{"rendered":"
\n

The Consumer Financial Protection Bureau<\/strong><\/a> (CFPB) last month issued an enforcement order against former Home Equity Conversion Mortgage (HECM) servicing contractor NOVAD Management Consulting<\/strong><\/a> and subcontractor Sutherland Global<\/strong><\/a> for what the bureau called \u201cillegal activities that harmed older homeowners and caused them to fear losing their homes.\u201d An attorney said the decision could have broad implications for mortgage servicing<\/a>.<\/p>\n

In an article published by The National Law Review<\/strong>, attorney Jonathan R. Kolodziej of Bradley Arant Boult Cummings LLP<\/strong> said that the order could have broad implications<\/a>, particularly as it pertains to establishing what constitutes abusive conduct toward a borrower.<\/p>\n

\u201cThe groundwork for this line of thinking was laid out by the current CFPB administration through various statements and guidance documents, but the public order represents the first time it was formally put in action against a loan servicer,\u201c Kolodziej wrote. \u201cWhile the consent order involves a reverse mortgage servicer, the implications of this theory of liability are far reaching, and certainly not limited to just reverse mortgages.\u201d<\/p>\n

The bureau, he wrote, indicated that ineffective loan servicing rose to the standard of abusive conduct.<\/p>\n

\u201cTying this back to the elements of an abusive act or practice from the [Consumer Financial Protection Act (CFPA)], the CFPB explained that the \u2018failure to respond to inquiries from reverse-mortgage borrowers undermined consumers\u2019 ability to protect their interests in using a reverse mortgage.\u2019 Furthermore, \u2018[c]onsumers did not choose to have [the servicer] service their reverse mortgage and could not protect their interests by selecting a different servicer,\u2019\u201d he explained.<\/p>\n

The CFPB alleged that the servicer \u201cgained an unreasonable advantage by avoiding the cost of providing adequate resources and staffing for the loan-servicing operation,\u201d resulting in what the bureau calls abusive conduct for failing to adequately service these borrowers\u2019 loans.<\/p>\n

\u201cThe implications of the theory relied upon by the CFPB in the NOVAD consent order could be far reaching,\u201d Kolodziej said. \u201cWhile the consent order is between the CFPB and a single reverse mortgage loan servicer, it would be a mistake to think that the same arguments could not be levied against other types of third-party servicers. Indeed, there is nothing specific or unique to the HECM or reverse mortgage product<\/a> in the argument relied upon by the CFPB.\u201d<\/p>\n

He added that it \u201cnow seems likely that any ineffectiveness in performing servicing duties could result in an abusive claim. This consent order further demonstrates that a servicer\u2019s duties aren\u2019t limited to things required by law.\u201d<\/p>\n

According to the original enforcement order<\/a>, Sutherland and its subsidiaries will \u201cpay $11.5 million in redress to affected consumers, and [the order] requires all companies to pay a civil penalty of approximately $5 million, which will be deposited in the CFPB\u2019s victims relief fund.\u201d<\/p>\n

NOVAD\u2019s fine is limited to $1 due to its declaration of an inability to pay. The $1 fine allows \u201cthe CFPB [to] make consumers eligible for additional relief from the CFPB\u2019s victims relief fund in the future,\u201d the bureau explained.<\/p>\n

NOVAD declined to comment when the order was publicly released. In a statement, a representative of Sutherland told HousingWire<\/strong> that the company reached a voluntary agreement with the CFPB regarding work it performed as a subcontractor for NOVAD, and it agreed to the payment while disagreeing with the CFPB\u2019s findings and denying its allegations.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Consumer Financial Protection Bureau (CFPB) last month issued an enforcement order against former Home Equity Conversion Mortgage (HECM) servicing contractor NOVAD Management Consulting and subcontractor Sutherland Global for what the bureau called \u201cillegal activities that harmed older homeowners and caused them to fear losing their homes.\u201d An attorney said the decision could have broad […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-57740","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nCFPB order against reverse mortgage servicers could have wider implications - Houses Marketplace<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/housesmarketplace.trio-tv.com\/ru\/cfpb-order-against-reverse-mortgage-servicers-could-have-wider-implications\/\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CFPB order against reverse mortgage servicers could have wider implications - 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