On July 1, the CFPB announced that it terminated a consent order against a mortgage servicer after finding that the company had “fulfilled several obligations,” including payment of a $2 million civil money penalty and $3 million for “Bureau-administered consumer redress.” The Bureau stated in the order that it will distribute to consumers in accordance with the terms of the order.
As previously covered by InfoBytes, the CFPB announced an administrative proceeding against the mortgage servicer for allegedly taking improper foreclosure actions against borrowers and preventing borrowers from leveraging foreclosure relief options. In the original 2024 consent order, the CFPB alleged the respondent failed to implement proper loss mitigation practices and therefore engaged in improper foreclosure activities.
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