The Consumer Financial Protection Bureau announced on Monday that Flagstar Bank “drove borrowers into foreclosure” by holding back important documents.
According to CNN Money, the bank was severely understaffed, and for documents that should have taken just days to file, it was upwards of nine months before some of them were looked at. Flagstar will now pay a $10 million fine, on top of shelling out $27.5 million to 6,500 victims.
“With this matter now behind us, everyone at Flagstar Bank is committed to building on the significant progress we have achieved while continuing to operate with integrity, responsiveness and a commitment to our core values,” CEO Alessandro DiNello said in a statement.
Image via flickr/Paul Sableman
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