MBA Letter on HUD's Mortgagee Review Board Enforcement Against Convenience Fees
MBA understands that numerous mortgage servicers have received notices of violation (NOV) from the Department of Housing and Urban Development’s (HUD) Mortgagee Review Board (MRB) alleging that they violated HUD requirements by charging borrowers convenience fees for the borrowers’ use of optional expedited payment services. Specifically, HUD, through the NOVs, contends that accepting and processing borrowers’ mortgage payments online, over the phone through a customer service representative, or through interactive voice recognition is “part of a prudent Mortgagee’s servicing activity” and, therefore, charging a fee for such activity is prohibited. MBA disagree with HUD’s conclusions and express concern with HUD’s administrative enforcement efforts. Accordingly, MBA urge HUD to rescind the pending NOVs and cease further MRB action on convenience fees