Customers with loans serviced by Mr. Cooper Group had their data exposed by a cyberattack last week, the mortgage servicing provider said Thursday.
“Our preliminary analysis found that certain customer data was exposed, however it will require additional analysis to validate this finding and quantify the scope and type of any such exposure,” the company said Thursday in an updated filing with the Securities and Exchange Commission.
“While we cannot presently quantify the full extent of remediation and legal expenses associated with this cyberattack, we do not believe the impact will be material to our results of operations or financial conditions,” EVP and CFO Kurt Johnson said in the SEC filing.
Mr. Cooper shut down multiple systems after it discovered the cyberattack Oct. 31, leading customers to make one-time payments on their loans via other means. The Texas-based company is the third-largest mortgage servicer in the U.S. with more than 4.3 million customers.
The confirmed exposure of customer data comes one week after the company reported a threat actor accessed certain technology systems in an earlier filing with the SEC.
“We continue to conduct a thorough investigation and have not reported the total customer impact number at this time,” a spokesperson said via email.
The cyberattack blocked millions of customers from making payments and processing mortgage transactions, leading the company to set up alternative payment methods online. Customers won’t be hit with late fees or negative credit reports until operations return to normal, the company said.
“Mr. Cooper does not store banking information related to mortgage payments on our systems. This information is hosted with a third-party provider and, based on the information we have to date, we do not believe it was affected by this incident,” the company said Thursday on a temporary site set up to provide customers with updated information.
The company anticipates additional vendor costs up to $10 million in the fourth quarter and expects operational impacts to be limited to that period, which closes at the end of the year.
