ROCHESTER, NY — Sutherland has issued a response to the Consumer Financial Protection Bureau‘s (CFPB) recent actions regarding work it performed as a subcontractor for NOVAD Management Consulting, which concluded in 2022. NOVAD held contracts with the U.S. Department of Housing and Urban Development (HUD) to provide support for reverse mortgage servicing. Sutherland was hired by NOVAD for specific, limited support services.
In its response, Sutherland clarified that it was not directly responsible for the reverse mortgage servicing that is the focus of the CFPB agreement. The company stated that HUD managed all aspects of reverse mortgage servicing, communicating solely with NOVAD. Sutherland had no direct access to HUD guidelines, the HUD servicing system, borrower communications, or borrower files.
Sutherland has expressed disagreement with the CFPB’s findings and denies the allegations. However, the company has chosen to agree to the Consent Order. This decision was influenced by NOVAD’s inability to pay, as revealed through NOVAD’s financial statements and the CEO’s tax returns.
By settling this matter, Sutherland aims to put the issue behind it and concentrate on its core mission. “Settling this issue allows Sutherland to close this matter on a subcontract that ended in 2022,” the company stated, emphasizing its commitment to supporting customers with industry-leading innovation and high-quality digital solutions.
This resolution marks an end to Sutherland’s involvement in the subcontract, allowing it to move forward and focus on future endeavors without the distraction of past contractual disputes.
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