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America's Most Watched Lenders and Servicers

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46 ew regulations have the propensity to transform the mortgage industry into a system where servicers deliver, regulators protect, and consumers trust again. e Consumer Financial Protection Bureau's (CFPB) mortgage servicing regulations aim to do just that—get delinquent borrowers into loan modification plans and establish effective communication channels between the servicer and borrower to ultimately protect them from foreclosure. However, there is a price to pay to achieve stabilization within the industry, and small to mid-size servicers will be impacted the most. e CFPB's mortgage servicing regulations are broad and encompass multiple areas of operations in a servicing company; however, early intervention, continuity of contact, and loss mitigation for delinquent consumers, as well as accurate reporting for all, are the top mandates and toughest obstacles servicers will place the most time, money, and effort into while on the road to compliance. Because small to mid-size servicers often lack the resources—personnel, technology, and training, among others—to I N D U S T R Y I N S I G H T / B A R R Y H A Y S COST OF COMPLIANCE: COMMUNITY- BASED SERVICING Do regulation costs outweigh potential business and industry benefits for small to mid-size servicers, or have these companies put controls in place to weather any market condition?

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