AG HEALEY SECURES $975,000 FROM MORTGAGE COMPANY OVER ALLEGATIONS OF UNLAWFUL MORTGAGE SERVICING AND DEBT COLLECTION PRACTICES
Settlement Resolves Allegations that RoundPoint Mortgage Servicing Corporation Violated State Consumer Protection and Debt Collection Laws and Regulations
BOSTON – A South Carolina mortgage servicing company will pay $975,000 and change its business
practices to resolve allegations that the company failed to make required efforts to help homeowners avoid foreclosure and engaged in other unfair debt collection and mortgage servicing practices, Attorney General Maura Healey announced today.
The assurance of discontinuance, filed today in Suffolk
Superior Court, alleges that RoundPoint Mortgage Servicing Corporation violated
the Massachusetts Act Preventing Unlawful and Unnecessary
Foreclosures, codified as “Section 35B”, which requires mortgage servicers to make a
good faith effort to help borrowers with certain unfair loan terms avoid
foreclosure. The settlement also alleges that RoundPoint violated the Attorney General’s Debt Collection Regulations by failing
to timely issue compliant debt validation notices, and calling borrowers more
frequently than is legally allowed.
“Homeowners need to be able to count on mortgage companies to provide them with
accurate information and take required steps to help prevent foreclosures,”
said AG Healey. “Our office is committed to protecting consumers and helping
people stay in their homes.”
The AG’s Office alleges that RoundPoint failed, among other
things, to conduct necessary analysis under Section 35B by failing to properly
assess borrowers’ income, debts and obligations when reviewing for affordable
loan modifications, and as such also failed to provide the results of these
assessments to borrowers. RoundPoint further failed to provide borrowers with
notice of their right to present a counteroffer after being offered a loan
modification.
The settlement includes additional allegations that RoundPoint
frequently violated the AG’s Debt Collection Regulations, which specify that creditors
cannot call more than twice in a seven-day period, and must, within five days
of an initial debt collection communication, provide borrowers with notice and
opportunity to validate the amount of the debt. RoundPoint harassed borrowers
with excessive calls, and failed in thousands of instances to send timely debt
validation notices.
In addition to paying $975,000 to the state, RoundPoint will
make significant business practice changes and provide ongoing reporting to the
AG’s Office to ensure compliance with Massachusetts law and better assist
struggling borrowers.
AG Healey has consistently been an advocate for homeowners
and sought to ensure that mortgage servicers and other creditors respect the
rights of homeowners under state law. The AG’s Office has been a national
leader in securing restitution and other relief for borrowers from banks and
servicers, including Ditech, PHH, Nationstar, HSBC, Shellpoint Mortgage Servicing, Caliber Home Loans, Bayview, Seterus, Fay Servicing, and others on behalf of Massachusetts
homeowners.
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