Specialized Loan Servicing, LLC
On May 11 2020, the Consumer Financial Protection Bureau (Bureau) issued a consent order against Specialized Loan Servicing, LLC (SLS), a mortgage-loan servicer in Colorado. As of February 29, 2020, SLS serviced a portfolio of mortgage loans worth about $112.69 billion. The Bureau’s investigation found that since January 2014, SLS violated the Real Estate Settlement Procedures Act (RESPA), its implementing regulation, Regulation X, and the Consumer Financial Protection Act of 2010 (CFPA) by taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and by failing to send or to timely send evaluation notices to mortgage borrowers who were entitled to them. In some cases, SLS obtained foreclosure judgments and conducted foreclosure sales on borrowers’ homes when Regulation X would have entitled the borrowers to protection from foreclosure had SLS complied with that rule. The consent order requires SLS to pay $775,000 in monetary relief to consumers, waive $500,000 in borrower deficiencies, pay a $250,000 civil money penalty, and implement procedures to ensure compliance with RESPA and Regulation X.
Consumer Financial Protection Bureau Settles with Specialized Loan Servicing, LLC