Flagstar sets another milestone in servicing debacle

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Flagstar sets another milestone in servicing debacle

richard cordray

Concerns around the performance of rapidly growing special mortgage servicing firms in the US grew again this week, as the Consumer Financial Protection Bureau (CFPB) took the unprecedented step of prohibiting Flagstar Bank from taking on any more mortgage servicing rights (MSRs) for delinquent loans, alongside a $37.5m enforcement order.

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