The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) announced on Tuesday that the organizations are taking action against Green Tree Servicing, a subsidiary of Walter Investment Management Corp., for “mistreating borrowers” who were attempting to save their homes from foreclosure, HousingWire.com reported yesterday. According to the CFPB and the FTC, Green Tree failed to honor modifications for loans transferred from other servicers, demanded payments before providing loss mitigation options, delayed decisions on short sales, and harassed and threatened overdue borrowers. Recently, Green Tree received a superior five STAR designation as part of Fannie Mae’s Servicer Total Achievement and Rewards program for 2014. As part of the agreement, Green Tree agreed to pay $48 million in restitution to victims, and a $15 million civil money penalty to the CFPB’s Civil Penalty Fund for its illegal actions, the CFPB said.
