The explosive rise of nonbank mortgage servicers over the last few years happened so quickly that regulators have failed to keep up; therefore regulators need to act quickly and increase oversight of nonbanks in an effort to further protect consumers, two prominent Democrats said this week. In a letter sent Monday to Consumer Financial Protection Bureau Director Richard Cordray, Sen. Elizabeth Warren, D-Mass, and Rep. Elijah Cummings, D-Md, call on the CFPB to increase its oversight of nonbank mortgage servicers, citing a report from the U.S. Government Accountability Office on the rise of nonbank servicers. The GAO report notes that the share of mortgages serviced by nonbanks increased from approximately 6.8% in 2012 to approximately 24.2% in 2015, in terms of unpaid principal balance.
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