McGlinchey in the News
What Mortgage Servicers Need to Know About CFPB’s Junk Fees UpdateRead Time: 1 min
Member Jim Sandy‘s (Cleveland) article “What Mortgage Servicers Need to Know About the CFPB’s Junk Fees Update” was republished in Westlaw Today.
In early March 2023, the Consumer Financial Protection Bureau (CFPB) issued a special edition of its Supervisory Highlights that focused exclusively on “junk fees” uncovered in supervisory examinations in various industries, including mortgage servicing. This continued focus on junk fees is unsurprising given the priorities of the Biden Administration to curb the use of fees charged to consumers for goods and services.
The Bureau highlighted numerous Unfair or Deceptive Acts or Practices (UDAAP) and Regulation Z violations related to junk fees in mortgage servicing. Those examinations resulted in servicers waiving or refunding these so-called junk fees and also serve as notice to other mortgage servicers for potential future regulatory or enforcement actions if these practices were to continue.