In the Matter of NOVAD Management Consulting, LLC

NOVAD Management Consulting, LLC allegedly sent borrowers repayment or “due and payable” letters that often falsely conveyed that their loans were in default and that the full amount of their loan was due. NOVAD also allegedly failed to effectively service borrowers’ reverse mortgages, including by routinely failing to acknowledge, timely respond to, and substantively respond to borrowers’ time-sensitive information requests and error notices; failing to acknowledge, investigate, and correct servicing errors; and failing to engage in two-way communications with borrowers, including after sending repayment letters to borrowers. According to CFPB, NOVAD’s conduct resulted in borrowers losing out on home sales, paying unnecessary costs, and fearing foreclosure and such conduct violated the Consumer Financial Protection Act of 2010’s prohibition against unfair, deceptive, and abusive acts and practices, the Real Estate Settlement Procedures Act (RESPA), and RESPA’s implementing regulation, Regulation X.

Summary generated from official Consumer Financial Protection Bureau press release