Mortgage Servicer Settles CFPB And State Charges For Unlawful Practices

The largest nonbank mortgage servicer in the United States reached concurrent settlements with the CFPB, state attorneys general and state bank regulators concerning allegations of unfair and deceptive mortgage loan servicing practices.

The CFPB alleged that the mortgage servicer violated multiple federal consumer financial laws. As alleged in the CFPB's Complaint, the servicer:

• failed to identify and honor pending loan modification applications, foreclosed on borrowers to whom the servicer promised foreclosure holds while the borrowers applied for loan modifications, and impermissibly increased borrowers' monthly payments, in violation of Sections 1031 ("Prohibiting Unfair, Deceptive, or Abusive Acts or Practices") and 1036 ("Prohibited Acts") of Dodd-Frank;