WASHINGTON (7/31/15)--The Consumer Financial Protection Bureau (CFPB) has taken action against a mortgage broker, alleging it blocked consumers’ attempts at saving their homes from foreclosure.
The bureau announced Thursday that Residential Credit Solutions Inc., Fort Worth, Texas, has agreed to pay $1.5 million in restitution to victims and a $100,000 civil money penalty.
The CFPB alleges Residential Credit Solutions failed to honor modifications for loans transferred from other servicers, treated consumers as if they were in default when they weren’t, sent consumers escrow statements falsely claiming they were due a refund and forced consumers to waive their rights in order to enroll in a repayment plan.
Many violations occurred from 2009 to 2013, and the enforcement action covers the illegal practices prior to the January 2014 effective date of the CFPB’s new mortgage servicing rules.
Per terms of the enforcement action agreed to by the servicer, it will pay the $1.5 million in redress and $100,000 penalty. Residential Credit Solutions also will engage in efforts to help affected borrowers preserve their homes and honor prior loss mitigation agreements from by prior servicers.