Cyberattack on Mr. Cooper forces it to lock down systems

Company investigating whether any data was compromised

Texas-headquartered lender and servicer Mr. Cooper pointed to a cybersecurity incident that forced the company to lock down certain technology systems including access to its online payment portal. 

“On October 31, Mr. Cooper became the target of a cyber security incident and took immediate steps to lock down our systems in order to keep your data safe. Our systems remain locked down and we are working on a resolution as quickly as possible,” the company said in a statement on its website.

Mr. Cooper’s 8-K filing with the U.S. Securities and Exchange Commission (SEC) states that the company experienced a cybersecurity incident where an “unauthorized third party gained access to certain technology systems.”

The company does not believe this incident will have a material adverse effect on its business, operations or financial results.

Investigation is underway to determine if any data was compromised, notify impacted customers and provide identity protection services.

While the system is down, the company won’t be able to process customers’ payments and customers will not incur any fees, penalties or negative credit reporting related to late payments as they work to fix this issue, according to Mr. Cooper’s website.

The company didn’t respond to requests to comment on the ongoing investigation and when its systems will open. The company’s website still displayed a message on Nov. 3 from the day before that its systems remain locked down.

Mr. Cooper reported $275 million in net income in Q3, up from $142 million in Q2 and $113 million in Q3 2022. 

The strong performance of Mr. Cooper’s servicing portfolio led to the improvement in its profitability, the firm said in its latest earnings call. 

Mr. Cooper, as with most of the lenders in the industry, saw headwinds in its origination business. 

Funded volume declined to $3.3 billion in Q3, down from $3.8 billion in Q2 and $5.7 billion in Q3 2022. Mr. Cooper ranked as the 26th largest lender in the country, according to Inside Mortgage Finance (IMF). The company came in as the second-biggest servicer in the U.S., IMF data showed.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please