On May 29, 2009, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a Texas-based mortgage servicer, resolving allegations that the servicer had violated the Consumer Financial Protection Act (CFPA), the Real Estate Settlement Procedures Act (RESPA), and the Truth in Lending Act (TILA). The CFPB alleged that the servicer failed to acquire or transfer loss mitigation data and information, resulting in some consumers not being offered loss mitigation, their loan modifications not being honored, or their applications being delayed. The CFPB also alleged that the servicer’s practice was to service loans without ensuring that its service providers entered complete and accurate property tax and homeowner’s insurance policy information in the servicer’s systems, resulting in untimely escrow disbursements. The servicer also allegedly failed to promptly enter interest rate data for adjustable rate mortgage loans into its servicing system. Finally, the Bureau alleged that the servicer used an inadequate document management system.
Under the terms of the consent order, the servicer will pay a civil money penalty of $200,000 and restitution of approximately $36,500.