CFPB is going after Mr. Cooper for unauthorized withdrawals
The Consumer Financial Protection Bureau is investigating the apparent unauthorized withdrawals made by a mortgage servicer, Mr. Cooper.
The CFPB said that unauthorized duplicate-payment drafts by Mr. Cooper appear to have resulted in hundreds of thousands of consumers’ bank accounts being debited for multiples of their mortgage payments.
Affected consumers have reported being charged overdraft fees and likely suffered additional harm as a result of these unauthorized
withdrawals.
This doesn’t look good for Mr. Cooper.
“The CFPB is taking immediate action to understand and resolve the situation that has affected hundreds of thousands of consumers,” said CFPB Acting Director Dave Uejio.
“The CFPB will use all appropriate tools at our disposal to help ensure harmed consumers receive relief. Consumers affected by the incident should monitor their accounts and may contact Mr. Cooper directly,” he added.
🤣 MEME of the day by Jason Farr 🤣
Have a funny meme? Email your favorite meme here for a chance to be featured in our next Rise&Shred.
Brokers go to war with themselves over United Wholesale ultimatum
Well, this is escalating quickly.
According to NMP, United Wholesale Mortgage is facing a Class Action lawsuit that was filed by The Parrish & Goodman Law Firm, on behalf of a large group of independent mortgage brokers from Florida.The group is looking to earn back their freedom to choose which lender is best for their clients, following the alleged anticompetitive ultimatum that was issued by UWM CEO Mat Ishbia in early March, according to a press release from the firm.
UWM's ultimatum will not allow brokers who conduct business with Rocket Mortgage or Fairway Independent Mortgage Corporation to work with the company. Both Fairway and Rocket have since issued a number of responses, raising concerns about a broker's freedom to choose who they want to work with.
However, as things continue to heat up in the courtroom, brokers are leveraging attacks against one another on the comments boards at the bottom of the NMP article.
One reader said: “I find it very curious that this is a completely one sided article from a supposedly independent unbiased mortgage broker website. There was no input from UWM or comment that they even reached out to them.”
To which another reader replied: “This is wrong, they sent this to all brokers. You must be a pr rep at UWM.”
Here’s another thread:
Reader #1, (whose profile picture is a motorcycle): “No one is being forced to use UWMC. They're welcome to go elsewhere if they like. Overblown, and nothing will happen.”
Reader #2: “You should stick with bikes and avoid speaking on legal actions. Clearly you do not understand the issue.”
Reader #3: “This will go no where. Just like resturaunts having to choose Coke or Pepsi. Already been tried. Wouldn't suprise me if this was Rocket pushing this since these brokers probably at the very least have standing.”
Yes, it’s getting nastier by the day.
🔥 Take The WIN WIN WIN Approach 🔥
With Josh Pitts & Mark Teteris
Citi plans to build a better digital mortgage to lend to the underserved
While the rate of Citi mortgage applications and originations rose last year among Asian homeowners, itdeclined for Black and Hispanic consumers. In a statement, Citi is committed to addressing this decline by expanding its community lending team and resources to support Black and Hispanic homeownership across the U.S.
One way they plan to build homeownership is by continued investment in growing their digital mortgage capabilities.
“The financial inequality and other systemic problems people of color face will not go away until we confront them head on—and that’s what we’re working towards here at Citi,” Mark Mason, Citi CFO, said in a statement. “Citi is focused on ensuring that people of color have the same access to the financial tools and resources that benefit other groups. Doing so is a critical component of the work that needs to be done to close the racial wealth gap.”
Last year, Citi committed $1 billion to help close the racial wealth gap.
Citi’s Action for Racial Equity is a comprehensive approach to 1) providing greater access to banking and credit in communities of color, 2) increasing investment in Black-owned businesses, 3) expanding homeownership among Black Americans, and 4) advancing anti-racist practices in the financial services industry.
Spread the Rise&Shred ❤️ and share with a friend
