The CFPB has set a number of precedents with an enforcement action against Flagstar Bank. The action not only marks the first time the CFPB has enforced its new mortgage servicing rules, but also the first time it has banned a servicer from servicing new loans. The CFPB cited Flagstar for taking too long to process applications for foreclosure relief and permanent loan modifications—up to nine months per application. Flagstar also failed to inform borrowers when their application was incomplete and denied loan modifications to qualified borrowers. The CFPB estimates 6,500 borrowers were affected by Flagstar's faulty modification practices, of whom 2,000 were foreclosed upon. The CFPB has ordered Flagstar to pay $27.5 million to affected consumers and $10 million in fines.