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69 » VISIT US ONLINE @ DSNEWS.COM Servicing Your REO Properties CALL US 1.877.940.REOS WWW.BROOKSTONEMANAGEMENT.COM PRESERVATION RESTORATION REO ADVANCEMENT ENABLED With years of experience and a diverse portfolio consisting of thousands of successful property overhauls and rehabs, Brookstone is well versed in successfully moving a property from foreclosure to resale and beyond. Brookstone also provides a full range of hands-on maintenance services for both tenant- occupied and vacant properties. Servicing Your REO Properties P R O U D S U P P O R TE R S E P T E M B E R 1 7 T H , 2 0 1 5 Paymap made claims on its website such as, "e average customer will achieve over $33,000 in interest savings." "However, Paymap had no factual basis to support this claim," the CFPB said. "Moreover, only a tiny percentage, if any, of its customers achieved that amount of interest savings." e CFPB determined Paymap and LoanCare violated the Dodd-Frank Wall Street Reform and Consumer Protection Act's prohibition against deceptive acts and practices. e Bureau found consumers were lured by deceptive promises of savings and misled about when their payments would be applied. Pursuant to the Dodd-Frank Act, the CFPB has the authority to take action against companies engaging in unfair, deceptive, or abusive practices in the consumer financial marketplace. Under the terms of the consent order filed today, Paymap is required to return $33.4 million to approximately 125,000 consumers, which represents all fees paid by every consumer who enrolled in the equity accelerator program since July 21, 2011. "Deceptive advertising has no place in the financial marketplace," said CFPB Director Richard Cordray. "Today's action is delivering relief for consumers deceived by Paymap and LoanCare, and sending a clear message that these practices will not be tolerated." Despite the message, Tim Anderson, director of eServices at DocMagic, expressed a growing anxiety in the industry. "It has become a running theme and concern with the CFPB that they are using fines and fees as the tool for "enforcement" to interpret regulations that are broad, general and vague in terms of lenders knowing exactly how to comply beforehand." CFPB's Enforcement Actions: Under the terms of the consent order filed in July, Paymap is required to: » Paymap will return $33.4 million to consumers, which represents all fees paid by every consumer who enrolled in the Equity Accelerator Program since July 21, 2011. Approximately 125,000 consumers will receive refunds. » Paymap must ensure its marketing practices comply with federal law. Paymap is prohibited from advertising any benefits of the Equity Accelerator Program without credible evidence to support its claims, and from implying the program will change a consumer's regular mortgage payment schedule. Paymap must disclose that the source of any projected interest savings through the program is the higher annual mortgage payment a consumer will make in such a program. » Paymap will pay $5 million to the CFPB's Civil Penalty Fund. » Under the terms of the consent order filed in July, LoanCare is required to: LoanCare is prohibited from advertising any benefits of the Equity Accelerator Program without credible evidence to support its claims, and from implying that the program will change a consumer's regular mortgage payment schedule. LoanCare must disclose that the source of any projected interest savings is the higher annual mortgage payment a consumer will make in such a program. » LoanCare will pay $100,000 to the CFPB's Civil Penalty Fund. Based on language contained in the consent order issued by the CFPB, LoanCare stopped using Paymap as far back as 2012. e CFPB did not disclose whether there were servicers currently using Paymap.

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