Consumer Finance Protection Bureau (CFPB) was the agency established in 2010 as part of the Financial Reform law enacted to after the Banking collapse of 2008 to offer consumers some help from the abusive practices of lenders and loan servicing companies. CFPB supervises banks, credit unions, and other financial companies including Mortgage Loan Servicing companies and will enforce federal consumer financial laws.
In fact, it was NOT un-common for Mortgage Servicing companies to offer commission to their Bill Collection staff prior to this law which is akin to Sears Automotive offering commission to their mechanics on parts!! The change in the
Last week we wrote about the crazy Short Sale by IndyMac bank which was forcing us to lose sleep and hair at the same time in the Part 1 of this Insane Bank Practices on Short Sale.
Well, we have good news to report that after we advised our client to file a complaint with the Consumer Federal Protection Bureau their file was escalated to an escalation manager who reached out to talk to us.
The upshot of our conversation with the Escalation Manager was that he will be researching with the Short Sale team to see if they are able to make any exceptions to the process. In our case this bank was requiring out clients to miss at least 2 payments and damage their credit, before they were willing to consider a Short Sale.
So, this is proof that even the most stubborn of banks are required by law to respond to a consumer request by involving some of the Federal Agencies including Department of Housing and Urban Development (HUD) who will assign counselors to help consumer navigate their options to avoid foreclosure.
Feel free to Contact Us if you need help dragging your lender to the negotiating table.