Mortgage servicers could see and increase in oversight if a recently introduced bill is approved. According to a recent report, Rep. Maxine Waters wants tighter oversight for servicers of single-family home loans.
"Under the Homeowner Mortgage Servicing Fairness Act of 2018, all mortgage servicers that work with Fannie Mae and Freddie Mac would see increased scrutiny from the Federal Housing Finance Agency, including new documentation requirements regarding communications with borrowers and per-day civil monetary penalties for companies that do not follow laws regarding mortgage servicing," according to Reverse Mortgage Daily.
"'Mortgage servicers play a critical role in determining whether homeowners experiencing financial hardships will be forced out of their homes,' Waters, the ranking member of the House Financial Services Committee, said in a statement announcing the bill."
Waters wants to eliminate what the report stated as "bad behavior." Together with the Foreclosure Prevention Act of 2018, RMD says this combination of bills could help strengthen compliance with the "FHA's loss mitigation requirements."
To learn more about how this bill could change the way servicers are overseen, click on the image above.