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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.
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.
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