Mortgage Broker
Carrington Mortgage Services LLCHeadquarters
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Government Actions
Consumer Financial Protection Bureau v Carrington Mortgage
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On November 16, 2022, Carrington Mortgage Services LLC entered into a Consent Order with the Consumer Financial Protection Bureau. The Consent Order settles allegations that the business charged late fees to borrowers when their accounts were in forbearance, repeatedly provided false information about pandemic protection by requiring homeowners to remit their monthly payments immediately if not they could be facing foreclosure proceedings, when no payment was required. The business also misrepresented to homeowners that they needed to provide specific reasons in order to obtain a forbearance when they only needed to attest to financial hardship during the pandemic. The business also furnished information to the consumer reporting companies that certain borrowers' accounts were delinquent and failed to promptly notify the big three credit reporting companies about the errors.
Under terms of the Consent Order, the business was ordered to: annually conduct assessments of the customer service staff to ensure they are meeting the call volume needs of consumers, annual training for new employees and existing employees to ensure sufficient knowledge of forbearance, forbearance repayment options, and the law and guidelines applicable to forbearance, establish and implement policies and procedures to ensure communications about forbearance and forbearance repayment options and the guidelines are accurate to the law and not misleading, notify all consumers who were not eligible for forbearance that they may be eligible for loss mitigation assistance, including but not limited to forbearance, conduct an audit to search for affected consumers that have not been refunded yet, for full refunds for late fees and paid for payments not made due to a forbearance, refund all late fees to affected consumers based on the audit search results, promptly correct furnishing inaccuracies, annually review and update policies and procedures as necessary to ensure continued effectiveness and to comply with the law. It is further ordered, the business must pay a civil money penalty of $5,250,000.
This action is final
Service Area
- CA
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