CFPB slaps fine on mortgage servicer Seterus. Wait, SETERUS???
NOTE: More coverage to come on this issue in tomorrow’s Rise&Shred]
Who remembers the ill-fated Seterus mortgage servicing company? The IBM mortgage servicing business hit ​with a proposed class action​ in Florida last year accusing it of trying to intimidate homeowners into paying delinquent amounts by making false ultimatums to foreclose on their homes.?
The one that sold all MSRs to Mr. Cooper before folding? Ringing any holiday bells?
It was a mightly fall. At its height, Seterus, was based in North Carolina, serviced approximately 500,000 residential mortgage loans. But despite it not being in business, the CFPB still said it has to pay for its indiscretions… well Seterus’s successor in interest, Kyanite Services has to pay.
Yesterday’s CFPB consent order ​addresses widespread failures​ in Seterus’s handling and processing of struggling homeowners’ applications for loss mitigation options, which are alternatives to foreclosure made available through their servicer.
The consent order requires Kyanite to pay $4,932,525 in total redress to approximately 11,866 of the consumers to whom Seterus sent a defective acknowledgment notice. The consent order also imposes a $500,000 civil money penalty and includes injunctive relief that would apply in the event Kyanite engages in mortgage servicing.
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