Tuesday, August 11, 2015

Bankster Agrees To Cough Up $1.6M In Damages, Penalties To Settle Charges That It Generally Jerked Around Some Homeowners On Loan Modifications, Forcing Them To Waive Legal Rights To Obtain Repayment Plan

DSNews reports:
  • The Consumer Financial Protection Bureau (CFPB) [] announced a consent order against Fort Worth, Texas-based mortgage servicer Residential Credit Solutions for allegedly blocking borrowers' efforts to prevent foreclosure on their homes.

    The CFPB ordered Residential Credit Solutions to pay $1.5 million in redress to consumers and fined the servicer an additional $100,000 civil penalty. The Bureau said an investigation revealed that Residential failed to honor loan modifications transferred from other servicers, treated consumers as if they were in default when in fact they were not, falsely claimed consumers had extra money in escrow and were due a refund, and forced consumers to waive their rights to obtain a repayment plan.

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