CFPB Supervisory Highlights Mortgage Servicing Special Edition (Issue 11)

CFPBIn this eleventh issue of Supervisory Highlights, we share findings from recent supervisory examination observations in mortgage servicing.  To provide additional context for readers, we integrate these recent observations with observations from previous editions of Supervisory Highlights by subject matter loss mitigation acknowledgement notices; loss mitigation offers and related communications; loan modification denial notices; policies and procedures; and servicing transfers.  The report also discusses Supervision’s approach mortgage to servicing exams, including a description of recent changes to the mortgage servicing chapter of the CFPB Supervision and Examination Manual.


finds loan servicer practices can lead to “wrongful foreclosures and other serious harm,” and “consumers do not choose their mortgage servicers they cannot take their business elsewhere” when injured. Also …

  • CFPB found loan servicers failed to send mortgage loss mitigation acknowledgment notices due to software malfunction
  • CFPB found loan servicers made deceptive promises not to foreclose during loss mitigation review and did so anyway
  • CFPB finds loan servicers request additional modification documents only to deny the mod before deadline to produce
  • CFPB finds that loan servicers regularly fail to convert trial modifications to permanent modifications
  • CFPB finds that servicing transfers during trial modification process often results in wrongful denial

This is a scenario the clients of Denbeaux and Denbeaux experience far too often. We have cases dealing with Ocwen, Fay, SPS, Wells Fargo, Ditech. We have sued servicing companies to get our clients the modifications they deserve.


Read the full report

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Formed in 1989, Denbeaux & Denbeaux is a law firm dedicated to providing top level legal representation to its clients. The partners, Marcia Denbeaux and Joshua Denbeaux, as well as senior and associate attorneys, represent individuals and businesses in New Jersey State and Federal Courts.