Last month, the Consumer Financial Protection Bureau (“CFPB”)
came down hard on Green Tree Servicing, LLC, for its unfair mortgage servicing
practices. Green Tree was alleged to have engaged in unlawful servicing
practices for loans it acquired from other servicers. Specifically, Green
Tree was found to have failed to honor modifications given to borrowers
from prior loan servicers, delayed short sales decisions, and engaged
in threatening and harassing debt collection activity towards borrowers.
As a result of the findings, Green Tree has agreed to pay $48 million to
victims of its illegal servicing practices as well as a $15 million fine.
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