WASHINGTON - The Consumer Financial Protection Bureau announced on Tuesday that it was taking immediate action to resolve how many thousands of mortgage borrowers' bank accounts were debited for duplicate payments after a mortgage servicer announced the error on Monday.
The Texas-based Mr. Cooper, who is the largest U.S. non-bank mortgage servicer, announced an unauthorized discovery of duplicate pay drafts on 24 April from some of its borrowers' bank accounts in a blog post, adding that it was working on reversing what it called a payment-processing issue.
The CFPB is taking immediate action to learn the situation which has affected hundreds of thousands of consumers. The CFPB will use all the appropriate tools available at our disposal to help ensure harmed consumers receive relief, Dave Uejio said in a statement.
The firm said in the post that all duplicate transaction requests have been stopped. Any affected customers will not be responsible for any fees or other negative financial impact these may have caused.
The drafts did not affect all customers and reflected an unidentified vendor error. An investigation found there were no signs of system hacking or infiltration, it said.
While some affected customers received payment reversals over the weekend, others can expect them to be reflected by Tuesday, according to the firm.
The watchdog's response comes amid ongoing scrutiny of mortgage companies in fear of a looming COVID-related foreclosure crisis, reported Reuters last week.