Robert Maddox Quoted in Inside Mortgage Finance on HUD Revising Efforts on Servicing Convenience Fees

Bradley attorney Robert Maddox was quoted in Inside Mortgage Finance on overbearing notices of violations (NOVs) sent by the Department of Housing and Urban Development (HUD) to servicers regarding convenience fees charged to borrowers.

Maddox suggested that HUD should initiate a public discussion on whether convenience fees provide a public benefit. He said it’s fair to ask who should bear the cost of having a person on the phone available to take a payment and if it’s the consumer who should pay it, then what it should cost, suggesting it might be $3 to $8 per call or more.

If HUD released public guidance on convenience fees, Maddox added, “people may not agree on the dollar amount, but at least everyone would know.”

The Mortgage Bankers Association noted some NOVs sent by HUD’s Mortgagee Review Board seek civil monetary penalties for violations of the National Housing Act, and others mention additional administrative actions. Maddox explained that some servicers have settled with HUD over the NOVs, while others are taking a wait-and-see approach.

The full article, “HUD Urged to Revise Effort on Servicing Convenience Fees,” appeared in Inside Mortgage Finance on December 17, 2024. (login required)