Elizabeth Warren pushing CFPB for more oversight of nonbank mortgage servicers

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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