We are a mortgage servicer. We subservice about $8 billion. I am on the staff of the compliance department. Our servicing quality control audits have been picking up compliance issues, particularly overcharging late fees and charging consumers fees that should have been waived per the CARES Act.
The CFPB's recent Supervisory Highlights specifically mention these two issues in their examination audits. We have no wish to have CFPB examiners identify such findings in their audits.
We have been through three audit firms for servicing quality control. But only the current one picked up on these issues. Little good it does us since we've been making these mistakes for years! And our clients are going through MORA reviews. Some did not do servicing quality control, so they did not pick up on the problem. Others have, and now they are threatening to leave us.
We know you offer servicing quality control, so you have expertise in this area. We read your article on servicing QC and found it very helpful. Our concern now is to get a description of the implications of these process issues.
What are the compliance implications of overcharging late fees in loan servicing?
What regulatory issues arise when we charge consumers fees that should have been waived per the CARES Act?
