Mortgage

Mr. Cooper, ACI publishes additional particulars on cost draft errors

Mr Cooper released estimates on Tuesday for the number of borrowers affected by a recent payment draft error when his payment provider ACI Worldwide, along with the mortgage company, promised to rectify the situation.

An estimated 480,000 mortgage customers are affected by the duplicate drafts, and around 100 of them have not received adequate monetary fees from their banks due to ACI's mistake, Cooper said.

ACI confirmed that a processing problem was affecting payments and stated that it would issue a refund to borrowers who received the fees.

"All unauthorized transactions have been reversed and we are working with Mr. Cooper on any required fee refunds," ACI said in a statement sent via email.

Mr Cooper released the new details related to the incident, including the number of customers potentially affected, after the Bureau of Consumer Financial Protection weighed against its own estimate.

"The CFPB is taking immediate action to understand and resolve the situation affecting hundreds of thousands of consumers," Acting Director David Uejio said in a press release released Tuesday. "The CFPB will use all appropriate tools at our disposal to ensure that harmed consumers are exonerated."

Duplicate payments are rarely a sign of fraud and more often result from a system failure or a processing error.

The unauthorized drafts began on April 24th and Mr. Cooper worked with ACI to reverse them all. However, the mortgage servicer urged customers to continue monitoring their accounts and inform the company of any outstanding questions.

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