Sutherland and NOVAD reportedly failed to provide homeowners with crucial information, such as loan payoff statements and foreclosure alternatives. Additionally, they were accused of falsely informing homeowners about default status, causing confusion and distress.
Read more: CFPB shuts down reverse mortgage servicers
Denying the allegations, Sutherland said it was not directly responsible for the reverse mortgage servicing conduct in question. The servicer added that it was hired to provide “specified, limited support services” under NOVAD’s contract with the Department of Housing and Urban Development (HUD). According to Sutherland, the contract ended in 2022.
Sutherland claimed it had no direct access to HUD guidelines, the servicing system, borrower communications, or files, as HUD controlled all aspects of reverse mortgage servicing and communicated only with NOVAD.
“Sutherland, therefore, disagrees with the CFPB findings and denies the CFPB’s allegations,” the company said in a statement emailed to MPA.
Source: mpamag.com