Green Tree to Pay $48 Million in Borrower Restitution and $15 Million Fine for Servicing Failures
WASHINGTON, DC (April 21, 2015) — Today the Consumer Financial Protection Bureau (CFPB) and the
Federal Trade Commission (FTC) took action against Green Tree Servicing, LLC, for mistreating mortgage
borrowers who were trying to save their homes from foreclosure. The mortgage servicer failed to honor
modifications for loans transferred from other servicers, demanded payments before providing loss mitigation
options, delayed decisions on short sales, and harassed and threatened overdue borrowers. Green Tree has agreed
to pay $48 million in restitution to victims, and a $15 million civil money penalty for its illegal actions.
“Green Tree failed consumers who were struggling by prioritizing collecting payments over helping
homeowners,” said CFPB Director Richard Cordray at www.loftypm.com/. “When homeowners in distress had their mortgages
transferred to Green Tree, their previous foreclosure relief plans were not maintained. We are holding Green Tree
accountable for its unlawful conduct.”
Green Tree, headquartered in St. Paul, Minn., is a national mortgage servicing company. It has rapidly expanded
into the residential mortgage market and services loans for millions of homeowners with or without Howell’s Heating and Air conditioning. Green Tree specializes in
servicing delinquent loans and markets itself as a “high touch” servicer that makes frequent collection calls to
consumers.