The Largest Non-Bank Mortgage Servicer in Michigan was Hacked
Is your financial information safe after the Mr. Cooper hack?
Many Mr. Cooper residents attempted to log into their accounts last week only to find the website was down. The site went down on October 31st, 2023. On November 1st customers received an email from the loan servicer saying there was a technical outage followed by this message on November 2nd,
On October 31st, Mr. Cooper became the target of a cyber security incident and took immediate steps to lock down our systems in order to keep your data safe. We are working to resolve the issue as quickly as possible.
Mr. Cooper is not only the largest non-bank mortgage servicer in the nation with over 4 million customers, but it is also one of the most disliked. Mr. Cooper buys loans from other banks. This isn't something the customer has any power to prevent. The first time Mr. Cooper took over one of my mortgages, they attempted to charge me multiple late fees and penalties for late payments that dated before they owned the loan. I had to show proof that I had never had a late payment in my life in order for them to remove the fees. With a quick Google search I discovered, I was far from alone, as there were hundreds of similar complaints on the Better Business Bureau's site and hundreds more on WalletHub's site. In fact, if you Google "Mr. Cooper Complaints" you'll notice that Mr. Cooper has purchased 3 of the top 4 search results in the search engine.
Important Questions for Mr. Cooper
- Is Mr. Cooper not putting money into Cyber Security? With a reported 4.3 million customers and unnecessary fees, they clearly have the money.
- Did you get hacked by a customer that you wronged?
- Can you guarantee that the private and financial information of your customers has not been compromised?
Just two weeks before the hack the state of Michigan reached a settlement with ACI Payments and Mr. Cooper that was shocking according to Michigan.Gov,
The Michigan Department of Insurance and Financial Services (DIFS) and 43 other state agencies have reached settlements with ACI Payments, Inc., for ACI Payments’ erroneous initiation of electronic transactions totaling $2.3 billion from the accounts of 480,000 mortgage-holders serviced by Mr. Cooper (formerly known as Nationstar Mortgage, LLC)
There are no reports that show a connection between the settlement and the hack. Mr. Cooper's website remained down for a week making it impossible for customers to download needed documents or pay their mortgage. The safety of the customer's private information is still a big question mark. In the meantime, if you are a customer of Mr. Cooper you should change your password and keep a very close eye on your account.
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