- The Consumer Financial Protection Bureau (“CFPB”) reached a settlement with residential mortgage-loan servicer Specialized Loan Servicing, LLC (“SLS”) to resolve allegations that SLS engaged in behavior that harmed mortgage borrowers in violation of the Real Estate Settlement Procedures Act (“RESPA”) and its implementing regulation, Regulation X, as well as the Dodd-Frank Wall Street Reform and Consumer Protection Act.
- According to the CFPB, since 2014 SLS allegedly violated RESPA and Regulation X by taking prohibited foreclosure actions against borrowers who submitted loss-mitigation applications, which are meant to protect borrowers from foreclosure, and by failing to send or timely send evaluation notices to such borrowers.
- Under the terms of the consent order, SLS will pay $775,000 in restitution to affected borrowers and $250,000 in civil penalties to the CFPB. SLS will also waive $500,000 in borrower deficiencies. In addition, SLS is required to implement policies and procedures to ensure that borrowers are afforded the protections from foreclosure that are available to them under RESPA and Regulation X.