California Attorney General Rob Bonta on Friday announced a $4.6 million settlement with California-based mortgage servicer Select Portfolio Servicing (SPS). Under the agreement, which is subject to court approval, SPS will pay $1.6 million in civil penalties and provide $3 million in consumer restitution to affected borrowers.

The settlement also requires the company to overhaul parts of its servicing practices, including how it communicates with borrowers who seek loan modifications and other foreclosure-prevention assistance.

The move resolves allegations that the company violated state and federal mortgage servicing and debt collection laws while handling homeowners affected by the COVID-19 details ⇒

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