On December 18, 2020, the Consumer Financial Protection Bureau (Bureau) announced that it had entered into a consent order with a mortgage servicing company (and its successor in interest) resolving allegations that the company’s conduct between 2014 and 2018 violated the Consumer Financial Protection Act (CFPA) and Regulation X, the implementing regulations of the Real Estate Settlement Procedures Act (RESPA). The Bureau alleged that the company deprived borrowers of a reasonable opportunity to complete loss mitigation applications, failed to accurately review, process, and track borrower applications, and failed to accurately communicate with borrowers concerning their applications. The Bureau also alleged that the company failed to extend various other protections against foreclosure-related activities afforded borrowers under Reg X.
The consent order requires the successor in interest to provide consumer redress and pay a civil money penalty. The total amount of consumer relief and civil penalties recovered by the Bureau is about $5.5 million. The order also includes injunctive relief provisions, such as various reporting and record keeping requirements.