CFPB takes action against student lender,
intro’s mortgage servicing website for pros
Aug. 24, 2016 -- Action against a national private student lender, and the introduction of a new website to assist mortgage settlement professionals, were announced today by the CFPB.
In a press release, the bureau stated that it has taken action against Wells Fargo Bank for illegal private student loan servicing practices that increased costs and unfairly penalized certain student loan borrowers has been taken by the bureau. CFPB stated that it took the action after identifying breakdowns throughout the bank’s servicing process including failing to provide important payment information to consumers, charging consumers illegal fees, and failing to update inaccurate credit report information.
The CFPB’s order requires Wells Fargo to improve its consumer billing and student loan payment processing practices. The company must also provide $410,000 in relief to borrowers and pay a $3.6 million civil penalty to the CFPB.
Separately, the bureau unveiled a new website for mortgage settlement professionals, which it described as "designed to be an aid in navigating through the changes that are part of the 'Know Before You Owe' mortgage initiative.”
"One of the most important results of the Know Before You Owe mortgage initiative is the need for closer collaboration between settlement agents and creditors for both to effectively comply with regulatory disclosure requirements," the Bureau states in the introduction to the website. "Learn what has and has not changed about settlement agent responsibilities, creditor responsibilities, consumer privacy, and electronic delivery."