The federal government says Green Tree Servicing LLC will pay $63 million to settle allegations of illegal loan servicing and debt collection practices.
The Federal Trade Commission and the Consumer Financial Protection Bureau alleged the St. Paul-based company made illegal and abusive debt collection calls to consumers, misrepresented the amounts people owed and failed to honor loan modification agreements between consumers and their previous servicers.
Under the proposed settlement announced Tuesday, Green Tree will pay $48 million to affected customers and a $15 million civil penalty. The company also will stop the alleged practices and create a home preservation plan for some distressed homeowners.
Green Tree does not admit or deny the allegations. The company is a wholly owned subsidiary of Walter Investment Management Corp., based in Tampa, Florida.