Late fees wrongly charged to people in forbearance, and discriminatory lending practices were among the anonymized mortgage-related violations the Consumer Financial Protection Bureau reported finding in its most recent supervisory report.
Problems found in exams “often” don’t lead to enforcement actions, according to the CFPB’s Dec. 8 Supervisory Highlights bulletin. However, the bureau also noted that it has warned servicers in particular that
“The bureau is prioritizing servicing supervision in light of the increase in borrowers needing loss mitigation assistance this year,” according to the report. The CFPB also noted in an accompanying press release that it is “committed to rooting out all forms of lending discrimination.”
Specific servicing concerns cited by the bureau included instances where mortgage companies not only violated the CARES Act by charging borrowers in forbearance fees for nonpayment, but took almost a year to issue refunds. Examinations also allegedly uncovered situations where servicers charged fees that exceeded the actual cost of services provided, and mismanaged electronic funds transfers.
CFPB examiners additionally reported finding “several” lender violations of the Equal Credit Opportunity Act in its supervisory bulletin.
“The examination team found that mortgage lenders discriminated against African American and female borrowers in the granting of pricing exceptions, compared to non-Hispanic white and male borrowers,” the bureau said in the press release.
The CFPB also reported that examiners uncovered an instance of discrimination in small business lending.
“Some lenders improperly utilized a questionnaire that contained explicit inquiries about an applicant’s religion,” the CFPB said in the press release.
