The Halloween cyberattack of Mr. Cooper Group in which all of its current and former customer information was exposed will cost the company about $25 million for vendor services and identity protection, according to a new Securities and Exchange filing.
Originally estimated to cost between $5 to $10 million, the forensic review determined "that personal information relating to substantially all of our current and former customers was obtained from our systems during this incident. To assist our customers, we will offer complimentary identity protection services, including credit monitoring, to all of our current and former customers for two years."
As of Sept. 30, Mr. Cooper had 4.3 million customers.
The servicing company told regulators that it is "in the process of reaching out to customers with instructions on how to sign up for these complimentary services and how to contact us with questions."
Customers should receive a letter with the information and resources available to them. Mr. Cooper said on its website that it is "actively monitoring the dark web and has not seen any evidence that the data related to this incident has been further shared, published, or otherwise misused."
Mr. Cooper has set up a dedicated call center supported by TransUnion at 1-833-960-4745 (toll-free), available Monday through Friday 8:00 a.m. to 8:00 p.m. ET. Customers looking for more information may also visit www.mrcooperincident.com.
“We take our role as a mortgage company very seriously, and there is nothing more important to us than maintaining our customers’ trust. I want you to know how sorry I am for any concern or frustration this may have caused. Making the homeownership journey as smooth as possible is our top priority, and we intend to make this right for our customers,” said Jay Bray, chairman and CEO, Mr. Cooper Group.
ᐧIn the third quarter, Mr. Cooper delivered net income of $275 million and the company's funded volume reached $3.3 billion, with a servicing portfolio of $937 billion in unpaid principal balance.
It said even though the cost from the incident increased, the pretax operating earnings in originations is expected to range from a $0 to $10 million loss and the servicing segment is anticipated to report pretax operating earnings between $200 and $210 million. In the third quarter, servicing recorded pretax income of $361 million, including other mark-to-market of $61 million.
