A South Carolina-based mortgage servicing company has agreed to settle with the Massachusetts attorney general’s office over allegations that the company did not follow state requirements to help homeowners avoid foreclosure.
RoundPoint Mortgage Servicing Corp. will pay $975,000 and change its business practices to resolve allegations that the company violated state requirements for mortgage servicing and debt collection practices, the attorney general’s office said in a statement last week.
The settlement agreement alleged that RoundPoint Mortgage Servicing Corp. violated the Massachusetts law known as Section 35B that requires mortgage servicers to make a good faith effort to help borrowers avoid foreclosure. The settlement also alleged that RoundPoint violated the attorney general’s debt collections regulations.
“Homeowners need to be able to count on mortgage companies to provide them with accurate information and take required steps to help prevent foreclosures,” Attorney General Maura Healey said in the statement. “Our office is committed to protecting consumers and helping people stay in their homes.”
The attorney general’s office alleged that RoundPoint did not conduct or provide the analysis required by Section 35B to assess borrowers’ income, debts and obligations when reviewing for affordable loan modifications. RoundPoint also did not provide the required notice to let borrowers know they have the right to present a counteroffer after being offered a loan modification.
The debt collection violations included calling more than twice in a seven-day period and not providing borrowers with notice and opportunity to validate the amount of the debt within five days of the initial debt collection communication, the statement said.
RoundPoint must also change business practices and make ongoing reports to the attorney general’s office “to ensure compliance with Massachusetts law and better assist struggling borrowers,” the statement said.