Cypress reached a settlement in Suffolk County Superior Court to address allegations of unlawful practices in mortgage servicing. The company, which denies the allegations, is required to comply with consumer protection laws. Allegations include requiring large upfront payments for loan modifications without affordability analysis and making excessive debt collection calls. Although Cypress has sold its mortgage portfolio, it can still subcontract direct loan servicing, making compliance with state regulations essential for future operations. Attorney General Andrea Joy Campbell emphasized the importance of protecting consumers from profit-driven practices.
The settlement will help ensure compliance with meaningful consumer protections and put mortgage servicers on notice that Massachusetts will not tolerate unlawful practices that put profit over people.
The AGO claims that Cypress required borrowers to make large upfront payments without an affordability analysis as a condition for accessing loan modifications.
Cypress made unlawful debt collection calls to consumers, exceeding the state's limit of two such calls per week in thousands of instances.
Although Cypress has since sold its entire mortgage portfolio, it retains the ability to subcontract direct loan servicing and could resume operating as a direct servicer in the future.
#consumer-protections #mortgage-servicing #foreclosure-prevention #debt-collection #legal-settlement
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