Green Tree Must Refund Consumers $48M For Array Of Deceptive Practices

[dixiegrrrrl]

According to the CFPB complaint [PDF], Green Tree – a national mortgage servicing company specializing in servicing delinquent loans purchased from other lenders
– failed to honor modifications for loans transferred from other servicers,
- demanded payments before providing loss mitigation options,
- delayed decisions on short sales
- and harassed and threatened overdue borrowers.

On a number of occasions, the FTC and CFPB allege that Green Tree – which markets itself as a “high touch” servicer making frequent collection calls – failed to honor loan modifications that consumers had entered into with their prior servicers and insisted that the consumer pay their original, higher monthly payment.

The company also purportedly failed to obtain the information and documentation from the prior servicer that was needed to accurately collect payments from consumers, the complaint states.

Additionally, the servicer allegedly
- demanded payments before providing loss mitigation options,
-delayed decisions on short sales,
-and resorted to illegal practices to collect mortgage payments from consumers who fell behind on their loans,
-including the use of false threats, repeated calls, and revealing debts to third parties, like employers.

More information at link, which may affect you if you have a Green Tree mortgage.
http://consumerist.com/2015/04/22/mortgage-servicer-must-refund-consumers-48m-for-array-of-deceptive-practices/

Pls. kick so others can see this important settlement.

[Sherman A1]

1. K&R!

[yeoman6987]

2. Good for them

Although I can't imagine going to get a mortgage from a company called green tree for mortgages. Although who am I to talk, mine is from Bank of America. Although I have had zero problems with them, I have heard some owners have had problems.

[KamaAina]

3. "which markets itself as a “high touch” servicer making frequent collection calls"

I'm gonna hazard a guess that they play fast and loose with the law about what constitutes harassment.

[dixiegrrrrl]

4. On their billing statements, they clearly state they are a collection agency.

And that attitude has not left.
Thus they have been in trouble for illegal collection practices as well as illegal mortgage servicing practices.

We can thank Elizabeth Warren for this lawsuit, it was brought under the laws of the Consumer Financial Protection Bureau.

I am happy to report that Green Tree's parent company, Walter Investment Management Corp., is also under the gun for its' sharp practices,
the stock price has declined nicely.