Back in August, the Consumer Financial Protection Bureau proposed new mortgage servicing rules to better protect borrowers, which have been opposed by many consumer groups since.
A coalition of groups that support tougher financial regulations have asked the CFPB to cancel its proposal because they feel as though their are inadequate safeguards for borrowers.
"Major improvements in these areas are needed – including withdrawing and re-issuing a proposal if that is necessary in order to make the major changes required," Americans for Financial Reform wrote in a letter to the CFPB.
The Mortgage Bankers Association recently sent a letter to the CFPB as well, outlining its concerns with the bureau's proposal.
David Stevens, MBA president and CEO, wrote that it is critical that the CFPB take both borrowers' and servicers' needs into consideration when creating new rules. He said that the cost-benefit change for large and small servicers and mortgage borrowers alike need to be paid careful attention.
The CFPB plans on implementing new servicing rules at the beginning of next year.