In September 2014, the Consumer Financial Protection Bureau (CFPB) fined Flagstar Bank. The fine was fo over $37M. The reason for the fine was for not assisting borrowers with foreclosure relief in a timely manner.
The bank will return $27.5M to borrowers and pay a fine of $10M. The CFPB has made serious statements about Flagstar’s ability to service it’s assets in default and follow the law and guidelines that apply to such loans. Specifically, Flagstar “failed struggling borrowers at every step of the foreclosure process” with unacceptable delays, insufficient staffing and wrongly denied applications.
To learn more, read all the details here.