Federal agency faults mortgage servicers' 'sloppy' handling of paperwork

Some mortgage servicers are “sloppy” when handling the paperwork necessary to collect and process mortgage payments, the Consumer Financial Protection Bureau said in a recent report.

Servicers’ carelessness includes improperly transferring paperwork when loans are sold, the misapplication of payments, sometimes causing homeowners to pay their property taxes late, and excessive delays in processing borrower requests for private mortgage insurance cancellation, among other issues.

New mortgage servicing rules instituted by the CFPB are set to go into effect in January.

Source: AOL Real Estate