Mr. Cooper Takes Rapid Action to Reverse Invalid Payments

Rhea-AI Summary

On April 24, 2021, Mr. Cooper reported an error by its electronic payments vendor, ACI Worldwide, which issued incorrect mortgage payment drafts during a system test. The company promptly notified affected banks and took measures to prevent financial impact on customers. Of 480,000 potentially impacted customers, only about 100 may have incurred nonsufficient funds fees, which Mr. Cooper is in the process of reimbursing. The situation was managed effectively with no funds taken from customer accounts and no security breach. Mr. Cooper is committed to customer trust and support.

Positive

• Prompt notification to banks and customers prevented potential financial losses.
• Only 100 out of 480,000 customers affected, indicating effective issue management.
• No security breach reported, ensuring customer data safety.
• Company committed to reimbursing affected customers for any fees incurred.

Negative

• None.

On Saturday April 24, 2021, Mr. Cooper discovered that its electronic payments vendor, ACI Worldwide, inadvertently issued incorrect mortgage payment drafts while conducting a test of their system. We immediately reported this error to our customers’ banks and worked with them to prevent any financial impact to our customer accounts by providing credits and reversing the incorrect drafts and fees which might have been charged. This was not a security breach, and Mr. Cooper did not receive any funds from customer accounts. As a result of our immediate action, as of Tuesday, April 27, out of 480,000 customers who could have been impacted, we are aware of approximately 100 customers who may have incurred nonsufficient funds fees as a result of ACI’s error, and we are in the process of reimbursing them for these fees. We are not aware of any customers for whom the incorrect drafts were not reversed.

The trust of our customers is more important to us than anything else. Upon discovering the payment processor’s error, we alerted customers through email, our website, social media posts, and our blog, and we have brought on extra staff at our call centers to answer customer questions. Any impacted customers will not be responsible for any fees or other charges they may have incurred.

Customers looking for more information may visit the Payment Information Center on mrcooper.com or call us at 888-480-2432.

About Mr. Cooper Group

Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. Xome provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents and mortgage companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210427006210/en/

FAQ

What happened with Mr. Cooper on April 24, 2021?

Mr. Cooper's vendor, ACI Worldwide, issued incorrect mortgage payment drafts during a test, which the company promptly addressed.

How many customers were affected by the ACI Worldwide error?

Out of 480,000 potentially impacted customers, approximately 100 may have incurred nonsufficient funds fees.

Is Mr. Cooper responsible for the incorrect mortgage payments?

No, the error was due to ACI Worldwide's system test, and Mr. Cooper took immediate action to reverse the drafts.

What steps did Mr. Cooper take to address the payment issue?

Mr. Cooper alerted banks and customers immediately, provided credits, and is reimbursing affected customers for any fees incurred.

Where can I find more information about Mr. Cooper's payment issue?

Customers can visit the Payment Information Center on Mr. Cooper's website for more details.