Mr. Cooper Group Inc. ( COOP Quick Quote COOP - Free Report) has agreed to pay a penalty of $28.6 million in order to settle legal probes with Consumer Financial Protection Bureau, the multi-state committee of mortgage banking regulators and various State Attorneys General, and the executive office of the United States Trustee.
The probes were related to certain improper loan servicing practices committed between 2010 and 2015, the discussion and findings on which were concluded in 2014-2015.
In reviews conducted later, the company’s practices by the regulators disclosed that management and the board have made efforts to rectify past faults. Also, Mr. Cooper is said to have made significant governance and operational improvements, along with bolstering internal control systems in accordance with the company’s size and scope of operations.
Apart from the penalty amount, the terms of settlement include restitution Mr. Cooper provided to customers during the last six years.
Chairman and CEO Jay Bray said, “We are pleased to resolve this matter. When these issues were identified several years ago, we immediately made restitution to our impacted customers and invested in process improvements to prevent reoccurrence.”
The company has been making investments in technology and leadership with a view to strengthen compliance and risk management programs.
“As the leading non-bank servicer, our success is defined by the positive experience of our more than 3 million customers. Nothing is more important than maintaining their trust, and the confidence of team members, business partners, and regulators.” Bray commented.
Shares of Mr. Cooper have appreciated 116.1% in the past six months compared with the
industry's 19.1% growth.
The company currently has a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Banks continue to encounter legal probes and are charged with huge sums of money for business malpractices. In November,
JPMorgan ( JPM Quick Quote JPM - Free Report) agreed to pay a fine of $250 million for poor risk management and internal controls over the fiduciary business.
Earlier in October,
Citigroup ( C Quick Quote C - Free Report) was slapped with a $400 million penalty by The Office of the Comptroller of the Currency for long-standing deficiencies in its risk management and internal controls processes. Also, Goldman Sachs ( GS Quick Quote GS - Free Report) admitted to conspiring to violate the Foreign Corrupt Practices Act in connection with a scheme to pay more than $1 billion in bribes to Malaysian and Abu Dhabi officials. The company will pay more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, etc. Biggest Tech Breakthrough in a Generation
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