Mortgage Servicer Reaches $975k Settlement with Mass. AG Over Debt Collection, Servicing Issues

The Attorney General of Massachusetts has announced an enforcement action against a mortgage servicing company that will pay $975,000 for engaging in unfair debt collection practices by failing to provide compliant debt validation notices and calling individuals more frequently than is allowed by state law, while also failing to make required efforts to help individuals avoid foreclosure.

A copy of the enforcement order with RoundPoint Mortgage Servicing Company can be accessed by clicking here.

Creditors and debt collectors are limited to making two calls to an individual during a seven-day period in Massachusetts, and must send individuals a notice and opportunity to validate a debt within five days of an initial debt collection communication.

While the Assurance of Discontinuance did not specify how many individuals were affected by the alleged debt collection violations, it did indicate that it failed to conduct a state-mandated analysis on 57 mortgages to properly assess borrower’s income, debts, and obligations when reviewing for affordable loan modifications, and also failed to provide the results of those assessments to borrowers.

The company has agreed to pay a fine of $975,000 and make “significant business practice changes” to ensure it complies with all laws and regulations in Massachusetts.

“Homeowners need to be able to count on mortgage companies to provide them with accurate information and take required steps to help prevent foreclosures,” said Maura Healey, the Attorney General of Massachusetts who will be sworn in next week as the state’s next governor. “Our office is committed to protecting consumers and helping people stay in their homes.”

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