CFPB finds abstention fees and fair loan issues in exams


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Late fees wrongly charged to forbearers and discriminatory lending practices were among the anonymous mortgage-related violations the Consumer Financial Protection Bureau pointed out in its most recent monitoring report.

According to the 8 December bulletin on CFPB supervision highlights, problems encountered during examinations “often” do not lead to enforcement action. However, the office also noted that it had warned repairers in particular that leniency related to the pandemic has ended. He also indicated that he would not tolerate violations of fair lending rules, such as recent allegations involving National Bank trust mark.

“The office is prioritizing the supervision of services in light of the increase in the number of borrowers requiring assistance to mitigate losses this year,” according to the report. The CFPB also noted in a press release that it was “committed to eliminating all forms of credit discrimination”.

The specific service issues cited by the bureau included instances where mortgage companies not only violated the CARES Act by charging borrowers a forbearance fee for non-payment, but took nearly a year to issue loans. refunds. The reviews also reportedly revealed situations where agents were charging fees in excess of the actual cost of the services provided and poorly managed electronic fund transfers.

CFPB examiners further reported finding “several” violations by lenders of the Equal Credit Opportunity Act in its watch bulletin.

“The review team found that mortgage lenders discriminated against African American borrowers and women in granting tariff exceptions, compared to white borrowers and non-Hispanic men,” the office said in the statement. hurry.

The CFPB also reported that examiners discovered a case of discrimination in small business loans.

“Some lenders have inappropriately used a questionnaire containing explicit questions about a claimant’s religion,” CFPB said in a press release.

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