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Massachusetts AG v. Cypress Loan Servicing (f/k/a Rushmore)
Filed
August 2025
Jurisdiction
Massachusetts State Court
Plaintiff Firm
Massachusetts Attorney General Andrea Campbell
Next Milestone
Restitution distribution to affected borrowers ongoing
Cypress Loan Servicing (formerly Rushmore, acquired by Select Portfolio Servicing, with ties to PHH Mortgage/Onity Group) violated Massachusetts consumer protection and debt collection laws by charging illegal foreclosure-related fees and failing to properly apply borrower payments
$2 million settlement with $1.5M in consumer restitution and $500K civil penalty; affects Massachusetts homeowners who were charged improper fees during foreclosure proceedings 2019-2024
Alleged Violations Period
2019-2024Cypress Loan Servicing (operating as Rushmore Loan Management Services until late 2024 rebrand) allegedly charges illegal foreclosure-related fees and fails to properly apply borrower payments in Massachusetts
Select Portfolio Servicing Acquisition
Late 2022Select Portfolio Servicing (SPS) acquires Rushmore's servicing assets and personnel; Rushmore's active servicing platform integrated into SPS
Massachusetts AG Investigation
2023-2024Massachusetts Attorney General Andrea Campbell investigates Rushmore/Cypress for consumer protection and debt collection law violations
Rushmore Rebrands to Cypress
Late 2024Rushmore undergoes major corporate restructuring and rebrands as Cypress Loan Servicing LLC
$2M Settlement Agreement
August 2025Massachusetts AG secures $2 million settlement with Cypress Loan Servicing (f/k/a Rushmore) including $1.5M consumer restitution and $500K civil penalty for illegal foreclosure fees and payment misapplication
Restitution Distribution
August 2025-PresentRestitution distribution to affected Massachusetts homeowners ongoing; settlement applies to Cypress as successor entity to Rushmore
Category
Mortgage LendingSettlement
6900000
Wells Fargo allegedly violated Truth in Lending Act by failing to properly disclose buydown agreements where sellers paid upfront fees to reduce buyers' interest rates, causing borrowers to pay higher rates than disclosed
Category
Mortgage LendingSettlement
1950000
Freedom Mortgage and Realty Connect violated RESPA Section 8 by exchanging illegal kickbacks: Freedom paid Realty Connect for referrals, and Realty Connect steered homebuyers to Freedom in exchange for payments disguised as 'marketing services'
Category
Mortgage LendingSettlement
$25 billion
Foreclosure abuse, robo-signing of documents, improper documentation
Real experiences from homeowners affected by mortgage lending violations.
I applied for a mortgage in 2020 for a home in a predominantly minority neighborhood. Despite having excellent credit and a stable income, I was repeatedly denied or offered rates significantly higher than friends with similar financial profiles in other areas. After seeing the CFPB enforcement actions, I realized I may have been a victim of redlining.
Loan Date: March 2020
When refinancing my home, my loan officer strongly pushed me toward a specific title company and appraiser. I later discovered through court documents that there was an illegal kickback arrangement between my lender and these service providers, which inflated my closing costs by thousands of dollars.
Loan Date: August 2021
I used an online mortgage rate comparison platform in 2022. I thought I was getting competitive rates, but after the Optimal Blue lawsuit came to light, I realized the platform may have been artificially inflating rates through coordination with lenders. My 'best rate' was likely not competitive at all.
Loan Date: November 2022
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