Rapid Growth of Mortgage Servicers Should Stop, Lawsky Says

Regulators should slow or stop the rapid growth of nonbank mortgage servicers to protect homeowners and ensure the firms can handle the increased business, according to New York’s top financial regulator.

“It is appropriate for regulators, where warranted, to halt the explosive growth in the nonbank mortgage servicing industry before more homeowners get hurt,” Benjamin M. Lawsky, head of New York State’s Department of Financial Services, said today in prepared remarks for the New York Bankers Association Annual Meeting and Economic Forum.