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Settled - August 2025

Cypress/Rushmore Foreclosure Fees Settlement

Massachusetts AG secures $2 million settlement for illegal foreclosure fees and payment misapplication

Settlement Amount

$2 Million

$1.5M restitution + $500K penalty

Settlement Date

August 2025

Restitution ongoing

Affected Area

Massachusetts

2019-2024 period

What Happened?

Cypress Loan Servicing (formerly known as Rushmore Loan Management Services) violated Massachusetts consumer protection and debt collection laws by:

  • Charging illegal foreclosure-related fees to homeowners facing foreclosure
  • Failing to properly apply borrower payments to mortgage accounts
  • Mishandling foreclosure proceedings in violation of state law

The company underwent significant corporate restructuring during the investigation period. Select Portfolio Servicing (SPS) acquired Rushmore's servicing assets in late 2022, and Rushmore rebranded as Cypress Loan Servicing in late 2024. The settlement applies to Cypress as the successor entity.

Who Is Affected?

You may be eligible for restitution if:

  • You had a mortgage serviced by Rushmore Loan Management Services or Cypress Loan Servicing
  • Your property was located in Massachusetts
  • You were charged foreclosure-related fees between 2019-2024
  • You experienced payment misapplication issues during this period
How to Get Restitution
Automatic distribution - no claim form required

What to Expect:

  1. If you're eligible, you'll receive notification from the Massachusetts AG's office
  2. Restitution will be sent automatically via check or applied to your account
  3. No action is required on your part

Questions or Haven't Received Restitution?

Contact the Massachusetts Attorney General's Consumer Hotline:

Visit Massachusetts AG Settlement Page
Settlement Timeline

2019-2024

Alleged violations period

Late 2022

Select Portfolio Servicing acquires Rushmore's assets

2023-2024

Massachusetts AG investigation

Late 2024

Rushmore rebrands to Cypress Loan Servicing

August 2025

$2 million settlement agreement reached

August 2025-Present

Restitution distribution ongoing

Cypress/Rushmore Payout Timeline
Total Settlement: $1.5M

Settlement Agreement Finalized

August 15, 2025

Completed

Amount: $2M total ($1.5M restitution)

Massachusetts AG and Cypress Loan Servicing reached settlement agreement. Restitution distribution process begins.

Initial Restitution Payments

September 1, 2025

Completed

Amount: ~$500K

First wave of automatic restitution payments sent to affected Massachusetts homeowners via check and account credits.

Second Distribution Wave

November 15, 2025

Completed

Amount: ~$600K

Additional restitution payments distributed to verified affected borrowers.

Final Distribution Phase

February 1, 2026

Upcoming

Amount: ~$400K

Final restitution payments to remaining eligible homeowners. Expected completion by end of Q1 2026.

3

Completed

1

Upcoming

0

Pending

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