Flagstar Bank Penalized for Causing Home Foreclosures through Repeated Failures

3268990035_5427457d36_qGregory Wallace of CNN Money reports that administrative snafus at Flagstar Bank lead to more than 2,000 house foreclosures in the last three years. A review by the Consumer Financial Protection Bureau led to the discovery that there were many issues that caused hardships for homeowners. Among them: loan modification applications took up to nine months to review, loan adjustment applications took so long to review that documentation expired and applications were closed out, routine miscalculation of borrower income, and more.  Flagstar bank is expected to pay $27.5 million to 6,500 victims of their delays in addition to a $10 million fine.

Learn more by reading the full article here.

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