This year has been full of changes when it comes to mortgages. With new regulations and rules being introduced to the industry, mortgage servicing companies have been scrambling to keep up and move forward.
The MBA’ 2014 National Mortgage Servicing Conference is being held this week. The four day expo began Tuesday, February 18 and ends Friday, February 21. The event, held at the Hyatt Regency Orlando in Orlando, Fla., brings together some of the industry’s greatest to discuss the current mortgage servicing outlook. The expo is also providing effective business practices that will help companies thrive in the current servicing market.
“The mortgage servicing playing field has certainly changed dramatically over the past few years, said MBA President David H. Stevens on Wednesday. “It’s had to adjust not only for companies to conform to the new regulations, but to also remain competitive and viable well into the future. For example, the top 10 servicers of five years ago are not the same today. New players have entered the field while some others are expanding, contracting or retrenching. “
“In a relatively short amount of time, you’ve sustained significant changes and our industry as a whole has been subjected to massive regulations, Stevens continued. “We’ve asked for clarity. We’ve asked for streamlined processes. We’ve asked to reduce the confusion and allow you to do your jobs.”
At Wednesday’s conference, Stevens announced that MBA is currently focused on solving three major problems that are unnecessarily hindering servicers’ ability to effectively serve borrowers. They are:
Debt Collection. The CFPB recently announced that it was collecting information to determine if all servicers should be subject to the Fair Debt Collection Practices Act in the same manner as a debt collector. According to Stevens, this goes beyond anything Congress called for under Dodd-Frank, portraying a fundamental misunderstanding of the role of a mortgage servicer. “MBA recently met with the CFPB on these issues and we are encouraged that they understand the negative impacts of extending the FDCPA to servicers in this manner,” said Stevens.
Alignment of regulatory requirements. “In addition to the CFPB’s requirements for borrower contact, the GSEs, other agencies and investors have each overlaid requirements for borrower contact, delinquency management, and foreclosure prevention,” explained Stevens.
Exams and audits. Steven announced that MBA wants to help servicers be prepared for upcoming scrutinization. “oon, if they haven’t already, federal auditors and CFPB supervisory exam teams will likely be taking up space in your offices. They’re going to review your procedures and processes to ensure compliance with the new federal regulations. While we appreciate the CFPB stating it will provide some leeway in its compliance examinations, you can still be penalized under the rules.”
For more information, visit www.mba.org.
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