Steven Antonakes, the Consumer Financial Protection Bureau's deputy director, said that mortgage servicers have had more than a year to prepare for a reform rule that took effect last month and suggested that the CFPB would move quickly and harshly against violators, American Banker reported yesterday. Antonakes acknowledged that the agency has previously suggested that it would be tolerant of mortgage servicing companies so long as they were making a "good-faith effort" to comply with the rule, but he warned that such allowances only extend so far. "A good-faith effort, however, does not mean servicers have the freedom to harm consumers," Antonakes said. The new mortgage servicing rule that went into effect on Jan. 10 requires clearer monthly statements and stricter timelines in responding to borrowers. It also bans servicers from dual tracking loan modifications and foreclosure procedures, as well as using force-placed insurance as a regular practice rather than a last resort.
