You may have heard the headlines….Greentree Loan Servicing recently got busted, in a real big way, for violating consumer rights. The bottom line, according to the CFPB is that Greentree must pay millions…with a significant portion of those millions being paid directly to consumers!
Determining if you qualify is a simple process. But chances are…if you were a consumer customer of Greentree, you should be entitled to relief. Contact my office directly for more information.
Green Tree Loan Servicing to Pay $48 Million in Borrower Restitution and $15 Million Fine for Servicing Failures
WASHINGTON, D.C.– Today, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) took action against Green Tree Servicing, LLC, for mistreating mortgage borrowers who were trying to save their homes from foreclosure. The mortgage servicer 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. Green Tree has agreed to pay $48 million in restitution to victims, and a $15 million civil money penalty for its illegal actions.
“Green Tree failed consumers who were struggling by prioritizing collecting payments over helping homeowners,” said CFPB Director Richard Cordray. “When homeowners in distress had their mortgages transferred to Green Tree, their previous foreclosure relief plans were not maintained. We are holding Green Tree accountable for its unlawful conduct.”
Here is some language from the settlement:
1. Eighteen Million Dollars ($18,000,000) for alleged violations of the
FTC Act, CFPA, and FDCPA with respect to Defendant’s alleged
misrepresentations relating to payment methods that entail a
convenience fee.
2. Thirty Million Dollars ($30,000,000) for alleged violations of the
FTC Act, CFPA, FDCPA, and RESPA with respect to Defendant’s
conduct relating to short sales and in-process loan modifications,
including Defendant’s alleged failure to timely respond to qualified
written requests relating to in-process loan modifications and with
respect to Defendant’s alleged misrepresentations about the time it
will take to review short sale requests.
