Carrington Mortgage Services LLC agreed to pay at least $5.25 million to resolve claims that it gave incorrect information to consumers about pandemic-era mortgage forbearance protections, the CFPB said.
The Anaheim, Calif.-based mortgage lender will pay the amount to the Consumer Financial Protection Bureau’s victim compensation fund. The company also will audit how many consumers paid improper late fees and reimburse the victims, according to the settlement announced Thursday.
The March 2020 CARES Act allowed people who had lost their jobs or saw their work hours cut due to Covid-19 to apply for a federal program to pause mortgage payments ...
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