CFPB’s $8 Million Judgment in Mortgage Servicing Case Upheld

A defunct mortgage servicer failed to get a federal appeals court to overturn a nearly $8 million judgment for false advertising in a long-running case brought by the Consumer Financial Protection Bureau.

The trial record supports a lower court’s finding that Nationwide Biweekly Administration Inc. and its founder Daniel S. Lipsky hid the true costs of an “Interest Minimizer” mortgage servicing program, the US Court of Appeals for the Ninth Circuit ruled Monday.

Nationwide told consumers they would see their average monthly mortgage payments decrease immediately under the program, but a setup fee of up to $995 meant homeowners would ...