On November 17, 2022, the Bureau issued an order against Carrington Mortgage Services, LLC, a California-based mortgage servicer operating in all fifty states. Carrington services a large number of federally backed mortgage loans, which are made or guaranteed by federal agencies or government-sponsored entities (GSEs). In 2020, Congress passed the CARES Act, which provided borrowers with federally backed mortgage loans who were experiencing financial hardship during the COVID-19 emergency with certain assistance, including forbearances of up to 180-days each upon request and protections for credit reporting. The federal agencies and GSEs also issued guidelines to their servicers relating to assistance to borrowers during the pandemic. The Bureau found that Carrington failed to implement a number of those protections. The Bureau also determined that Carrington violated the Consumer Financial Protection Act of 2010 as well as certain provisions of the Fair Credit Reporting Act and its implementing regulation, Regulation V. The order required Carrington to, among other things, establish policies and procedures to prevent the issues from recurring and pay a civil money penalty of $5.25 million.

On July 21, 2025, pursuant to its authority under 12 U.S.C. § 5563(b)(3), the Bureau terminated the order and waived any alleged non-compliance therewith. Carrington fulfilled certain obligations under the order, including paying a civil money penalty of $5,250,000 to the Bureau, and taking steps to identify and provide refunds to affected consumers who had not yet received refunds as of the effective date of the order.

Related documents

Consent order

Stipulation

Order Terminating the Consent Order

Press release

CFPB Takes Action Against Carrington Mortgage for Cheating Homeowners out of CARES Act Rights

Case docket

View case filings