July 30, 2015

CFPB orders mortgage company to pay $1.5M

CFPB ordered a Texas-based mortgage company to pay $1.5 million in restitution to consumers victimized when the company blocked attempts to save their homes from foreclosure.

The company, Residential Credit Solutions Inc., will also pay a $100,000 civil money penalty.

CFPB alleges that Residential Credit Solutions violated the Consumer Financial Protection Act regarding mortgages that it acquired in several ways, including: failing to honor in-progress loan modifications; providing incorrect information about payment due dates, delinquency statuses and monthly payment amounts; misrepresenting amounts in escrow; and forcing consumers to waive certain legal rights as part of receiving a payment plan.

Residential Credit Solutions is also ordered to help affected consumers preserve their homes, if not already foreclosed on, and to adhere to rigorous mortgage servicing transfer requirements.