The company, a major U.S. mortgage servicer, stated that it was in the process of ascertaining whether the attackers had acquired personal data of its four million customers.
Jay Bray, the CEO and president of Nationstar Mortgage Holdings, oversaw the company’s transition to the new brand name, Mr. Cooper, in 2017.
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Mr. Cooper, one of the largest nonbank mortgage loan servicers in the United States, experienced a cyberattack last week that disrupted various services for millions of customers.
The company, based in Coppell, Texas, disclosed in a regulatory filing that the attack occurred on October 31. They swiftly took measures to secure their systems, which, unfortunately, prevented customers from making online loan payments or accessing their account information.
On Monday, the company announced that they had restored their online payment system. They also provided alternative payment options, such as phone payments, mail, Western Union, or MoneyGram, to accommodate affected customers. Importantly, Mr. Cooper assured its customers that they would not face fees, penalties, or negative credit reporting during the resolution of the issue.
Mr. Cooper, previously known as Nationstar, serves 4.3 million mortgage loan customers. Since the cyberattack, many frustrated customers have voiced their concerns on the company’s social media accounts, citing issues with payment confirmations and urgent assistance requests ahead of foreclosures.
The company expressed its regret for the disruptions through a dedicated website. They are still investigating whether customer data was compromised and have not provided a timeline for full system restoration.
In their initial regulatory filing, Mr. Cooper downplayed the impact on their operations and finances. However, Moody’s Investors Service, represented by Stephen Lynch, is closely monitoring the incident and assessing potential repercussions, which will depend on the duration of disruptions, reputational damage, and the scale of the breach.
It’s worth noting that the Federal Trade Commission recently finalized a rule requiring nonbank financial institutions to report data breaches affecting 500 or more customers within 30 days. This rule, effective next year, is designed to encourage companies to prioritize the security of consumer data.
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