The Consumer Finance Protection Bureau (“CFPB”) and the Federal Trade Commission (“FTC”) announced a settlement with Green Tree Servicing for its mistreatment of borrowers trying to save their home from foreclosure.
Green Tree “failed to honor modifications for loans transferred from other servicers, demanded payments before processing loss mitigation options, delayed decisions on short sales, and harassed and threatened overdue borrowers.”
Pending court approval, Green Tree agreed to pay $48 million in restitution to victims, plus a $15 million civil money penalty for its illegal actions. Green Tree also must engage in efforts to help affected borrowers preserve their homes, cease mortgage servicing violations, cease deceptive tactics to charge consumer fees and provide improved customer service.
CFPB and Federal Trade Commission Take Action Against Green Tree Servicing for Mistreating Borrowers Trying to Save Their Homes