Credit bureau disputes challenge mortgage industry

Julie C. Nichols General

HousingWire – Christina Mlynski

The Consumer Financial Protection Bureau is putting servicers and lenders on the front lines by forcing them to thoroughly investigate consumer credit bureau disputes raised by borrowers. The bureau said companies providing information to consumer reporting agencies need to review all relevant information provided when credit bureau disputes about debts surface. "Credit reports play a critical role in the lives of consumers," said CFPB Director Richard Cordray. He added, "Given the importance of these reports, consumers need to know that their documents are being reviewed when they dispute what they believe is a mistake on a report."

Although mortgage lenders and servicers only make up 7% of trade lines in regards to credit reported by consumers, industry experts believe this bulletin will force mortgage companies to address consumer complaints in a timely manner. "When credit reporting is disputed or viewed as not accurate, the level of review and due diligence is not being met as satisfactory by the consumers," explained Fay Servicing chief compliance officer Loren Morris.

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