Mortgage payment co., servicer subject of CFPB UDAP action
WASHINGTON (7/29/15)--Paymap Inc. and LoanCare, LLC, a mortgage payment company and servicer respectively, are the latest subjects of a Consumer Financial Protection Bureau (CFPB) action.
The CFPB announced Tuesday it took action against the two entities for "for deceiving consumers with advertisements for a mortgage payment program that promised tens of thousands of dollars in interest savings from more frequent mortgage payments."
Under the terms of the orders announced today, Paymap will return $33.4 million in fees to consumers and pay a $5 million civil penalty to the CFPB, and LoanCare will pay a $100,000 civil penalty, the CFPB said.
The CFPB said that Paymap, a Colorado-based payment processing company, and LoanCare, Virginia-based residential mortgage servicer, advertised that consumers who enrolled in the Equity Accelerator Program would have a new, biweekly payoff schedule that would lead to significant interest savings because of the more frequent payments.
American Banker further identified Paymap as a payment processor that is part of Western Union, and LoanCare as a mortgage servicer that is a subservicer for Black Knight, which it said is majority-controlled by Fidelity National Financial (July 28).
The CFPB charges that the Equity Accelerator Program did not make more frequent payments on consumers’ mortgages and Paymap’s "prominent claims of tens of thousands of dollars in interest savings were made without any supporting evidence."
The CFPB found that Paymap and LoanCare violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition against deceptive acts and practices.
Click here to read more about the CFPB action.