When CFPB Director Richard Cordray took the MBA stage yesterday morning, he spoke broadly on the PHH decision, fixing redlining, as well as the DOJ and the upcoming HMDA legislation.
One important direction he announced: The CFPB will begin requiring underperforming servicers to document any technology or process changes they use to implement the agency’s new servicing regulations, noting that deficiencies are still common at many organizations. Not all have cleaned up their act since the housing crisis.
“In certain circumstances,” Cordray said, “we will require specific and credible plans on how their information technology systems will be upgraded,”
Cordray also urged mortgage professionals to learn better business practices not just from their unsatisfied clients, but from the complaints other businesses receive as well. This is an important piece of advice coming from a Bureau focused on protecting the consumer, and why the CFPB is publicizing consumer complaints—so we can all learn from them.
Know your industry’s weak points, not just your business’s. Doing so will help you avoid—or correct—the mistakes made by others in the industry.