COOP - ACI Worldwide fined $25M by CFPB for illegally processing mortgage payments
2023-06-27 10:43:03 ET
The Consumer Financial Protection Bureau fined ACI Worldwide ( NASDAQ: ACIW ) and subsidiary ACI Payments $25M for processing around $2.3B in illegal mortgage payments without authorization from customers, the agency said in a Monday release.
The transactions took hold in April 2021 and negatively impacted 500K borrowers with mortgages served by Mr. Cooper ( COOP ), the consumer watchdog noted, opening "homeowners to overdraft and insufficient funds fees from their financial institutions."
At the time, the Nebraska-based payment processor improperly used consumer data it had received from Mr. Cooper ( COOP ) during a test of its electronic payments platform, instead of using deidentified or dummy data.
"The CFPB's investigation found that ACI perpetrated the 2021 Mr. Cooper mortgage fiasco that impacted homeowners across the country," CFPB Director Rohit Chopra said in a statement, noting customer accounts had since been resolved but "we are penalizing ACI for its unlawful actions that created headaches for hundreds of thousands of borrowers."
The $25M civil penalty will be deposited into the CFPB's victims relief fund.
Investors, meantime, seemed unbothered by the enforcement action, with ACIW advancing 1% in Tuesday morning trading.
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ACI Worldwide fined $25M by CFPB for illegally processing mortgage payments