CFPB Terminates Consent Order with Florida Mortgage Servicer over Improper Foreclosure Practices

Recently, the CFPB terminated a consent order that it had entered into with a Florida-based mortgage servicer concerning allegations that the company had failed to inform borrowers of foreclosure protections while actively proceeding with foreclosures against them and that the company had violated a previous consent order.

In the first consent order, the Bureau alleged that the company had taken too long to review loss mitigation applications, and while the company was reviewing such applications, it nonetheless foreclosed on those borrowers in violation of Regulation X.

In the second consent order, the Bureau alleged that the company had failed to satisfy the first order’s requirement that it develop and implement policies safeguarding against improper foreclosure practices.  The Bureau also alleged that the company continued to file improper foreclosure actions, failed to present available mortgage assistance options, and overcharged for private mortgage insurance.

The company neither admitted nor denied the substantive allegations in both consent orders.  WBK previously covered the consent orders here.

Now, the CFPB has determined that the company “fulfilled several obligations under the [second consent order], including . . . paying a civil money penalty of $2 million and paying $3 million to the Bureau” for consumer redress.  The Bureau is also waiving any alleged noncompliance by the company with that order.