Mr. Cooper Has Acknowledged a Cybersecurity Breach

Mr. Cooper, a leading mortgage lender and servicer based in Texas, has acknowledged a cybersecurity breach that occurred on October 31. The company responded swiftly by securing its systems to safeguard customer data. According to their website, they are actively working on resolving the issue.

The breach was disclosed in a filing with the U.S. Securities and Exchange Commission, revealing that an unauthorized party had accessed certain technology systems. Mr. Cooper believes the incident will not significantly impact their business or financial standing, but many users have reported frustrations and concerns over not being able to access their account and make mortgage payments.

An investigation is in progress to ascertain if there was any data compromise, and the company intends to notify any affected customers and offer identity protection services.

Customer Payments Currently Cannot Be Processed

During the system lockdown, customer payments cannot be processed, but the company assures that customers will not face any late fees, penalties, or negative impacts on their credit reports due to this interruption.

No comment has been made by Mr. Cooper on the ongoing investigation or when the system will be restored. However, their website noted as of November 3 that their systems are still under lockdown.

Mr. Cooper Still Going Strong Despite Cyberattack

Despite these challenges, Mr. Cooper reported a substantial increase in net income for Q3, crediting the strong performance of their servicing portfolio. Nevertheless, like many in the industry, Mr. Cooper has experienced a downturn in its origination business, with funded volume decreasing in the third quarter.

The company holds the rank of the 26th largest lender nationally, and as per Inside Mortgage Finance data, it is the second-largest servicer in the U.S.