Flagstar Bank To Pay $37.5 Mln To Settle With CFPB

(RTTNews) - Flagstar Bancorp, Inc. (FBC), the holding company for Flagstar Bank, FSB, said that Flagstar Bank has entered into a settlement agreement with the Consumer Financial Protection Bureau related to alleged violations of federal consumer financial laws arising from the bank's loss mitigation practices and default servicing operations dating back to 2011.

Under the terms of the settlement agreement, Flagstar Bank will pay $27.5 million to the CFPB for borrower remediation, and $10 million in civil monetary penalties.

The settlement does not involve any admission of wrongdoing on the part of the company or its employees, directors, officers or agents.