Flagstar Bancorp recently disclosed that the company has been in ongoing discussions with the Consumer Financial Protection Bureau (CFPB) “over alleged violations of federal law arising from the bank’s loss mitigation practices and default servicing operations,” according to a bulletin from the CFPB. Flagstar owns approximately $69 billion in mortgage servicing rights. The company says it has provided information and documents to the CFPB “in response to a civil investigative demand (CID),” according to the bulletin. Flagstar also said it will defend itself against enforcement actions if brought, but is discussing settlement options with the CFPB at this time.
We will update with more information as it becomes available.