On June 30, 2021, Allyson Baker was quoted in American Banker on the potential for tougher supervision of student loan servicers by the Consumer Financial Protection Bureau (CFPB).
According to the article, Rohit Chopra, the CFPB's first student loan ombudsman, will likely crack down on servicers once he is confirmed by the Senate to lead the bureau. Chopra is widely expected to tag-team servicers with his old boss, former CFPB Director Richard Cordray, who is now the chief operating officer of federal student aid in charge of the Education Department's $1.7 trillion portfolio of loans.
"There's going to be a lot of coordinated work between the Education Department and the CFPB across a number of different avenues on federal loans," said Baker.
Chopra and Cordray are expected to work with the Treasury Department on a road map for student loan servicing reforms as part of an effort to reduce defaults and improve borrower outcomes.