In 2015, the CFPB took action against Residential Credit Solutions, Inc., a “national mortgage servicing company,” on behalf of borrowers for “allegedly thwarting their attempts to save their homes from foreclosure.” The consent order required the company to “pay borrowers $1.5 million in restitution” as well as a $100,000 civil penalty.

• Residential Credit Solutions was “headquartered in Fort Worth” at the time of the filing. The company was “founded by Dennis Stowe, who previously worked in the subprime lending industry,” and “holds about $95 million in total assets.” [Lindsay Wise, “Mortgage firm to pay $1.5 million in restitution,” Fort Worth Star-Telegram, 07/30/15]

• The administrative filing put forth by the CFPB alleged that “since 2009 by not honoring loan modifications agreed to by previous servicers and demanding that borrowers waive their rights in future foreclosures and bankruptcies if they wanted to qualify for repayment plans.” Additionally, the company “gave false information to some borrowers, misleading them about everything from unpaid balances and interest rates to payment due dates and how much money they owed each month.” [Lindsay Wise, “Mortgage firm to pay $1.5 million in restitution,” Fort Worth Star-Telegram, 07/30/15]

• In addition to the $1.5 million in restitution to borrowers, Resident Credit Solutions was ordered to “pay a $100,000 civil penalty and must help borrowers save their homes as part of the agreement.” [Lindsay Wise, “Mortgage firm to pay $1.5 million in restitution,” Fort Worth Star-Telegram, 07/30/15]