Tuesday, February 12, 2013

Bank of America mortgage transfers could draw CFPB attention

Bank of America could soon get some more scrutiny from the Consumer Financial Protection Bureau as it sells $300 billion in mortgage servicing rights over the course of the year.

Last month, Bank of America announced it was selling the rights to service 2 million mortgages, worth $306 billion, owned by Fannie Mae and Freddie Mac. The next day, Reuters reported the bank was looking to sell another $100 billion worth (though when asked about it later that month on its quarterly earnings call, executives did not describe plans to sell any more).

Ally Financial is also looking to sell a chunk of mortgage servicing rights, and Wells Fargo could be, too.

That all concerns the CFPB, which put out a bulletin Monday saying they might start asking banks that are selling large chunks of mortgage servicing rights to report how they will manage "the related risks to consumers."

If the agency thinks the banks are doing it wrong, the CFPB could require the banks to pay restitution to customers, the bulletin says.


Anonymous said...

What a complete and total joke. "The CFPB - Increasing the cost of goods and services for consumers since 2009."