CFPB Hits Servicer for Creating "Loan Modification Purgatory"

Posted To: MND NewsWire

A Texas mortgage servicer has run badly afoul of the Consumer Financial Protection Bureau (CFPB) for repeated violations of servicing rules . Residential Credit Solutions has agreed to pay $1.5 million in restitution to its victims and a $100,000 civil money penalty under a consent agreement announced on Thursday. CFPB has a laundry list of complaints against the company which bills itself as specializing in servicing delinquent and “credit sensitive” mortgages loans. Since 2009 approximately 75,000 borrowers have had loans transferred from other servicers to the company which has about $95 million in assets. This enforcement action covers Residential Credit Solutions’ illegal practices prior to the January 2014 effective date of the CFPB’s new mortgage servicing rules. CFPB said the company…(read more)

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Source: Mortgage News Daily

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