The Consumer Financial Protection Bureau said yesterday that Michigan-based Flagstar Bank will be required to pay $37.5 million in restitution and fines over regulatory allegations it blocked struggling homeowners from receiving foreclosure relief, CollectionsCreditRisk.com reported yesterday. In a consent order issued by the agency, the CFPB said that the $9.9 billion-asset Troy, Mich.-based bank violated mortgage servicing rules that took effect in January. Flagstar was cited for, among other things, taking too long to process applications for foreclosure relief and finalizing permanent loan modifications; failing to inform borrowers when their application was incomplete; and denying loan modifications to qualified borrowers. Flagstar has agreed to pay $27.5 million to about 6,500 consumers affected by these practices and another $10 million penalty to the CFPB.
http://www.collectionscreditrisk.com/news/ccr_regulation/cfpb-hits-flag…
The Somerset Inn in Troy, Mich., will be the site of ABI’s 10th Annual Consumer Bankruptcy Conference on Nov. 11 Featured programming will include a session on court-facilitated loan modifications. For more information and to register, please click here:
http://www.abiworld.org/DETROIT14/