The inspirational movie Lean On Me featured Academy Award winner Morgan Freeman in the role of principal Joe Clark, a no-nonsense reformer and disciplinarian who turned around a failing inner city school. His first day on the job, Clark held an all school assembly in which he expelled the worst “students” en masse and told the remaining kids what he expected from them if they wanted to avoid the same fate and, more importantly, actually succeed at school and life. Needless to say, his expectations were high and uncompromising, and his actions drew protests from students, parents, faculty and the school board. For those involved in mortgage servicing, the story of Joe Clark might bring to mind CFPB director Richard Cordray. If there was any doubt about his expectations for the industry, the release of the CFPB’s Supervisory Highlights in late August made them perfectly clear: he expects the rules to be followed. Announcing publication of the report in a press release titled “CFPB Examiners Find Mortgage Servicing Problems at Banks and Nonbanks,” Cordray said: “Our examinations of banks and nonbanks allow us to correct problems before more consumers are affected. Today’s report highlights both the mortgage servicing problems throughout the industry and the challenges of making sure [...]
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