Recent events have highlighted a significant challenge faced by homeowners in Texas and beyond as they encountered difficulties while trying to pay their mortgages. This issue stemmed from a cyberattack on Fidelity National Financial, a primary loan servicer, which disrupted various services, including those provided by its subsidiary, LoanCare.
The ransomware incident’s cyberattack significantly impacted Fidelity National Financial’s operations. Many customers were left in the dark, including those using LoanCare for mortgage services. An anonymous customer expressed frustration over the lack of communication from LoanCare. They discovered the issue not through a company announcement but during their attempt to pay their mortgage. The customer voiced their concerns, wondering why the company did not proactively inform customers of the situation and reassure them about potential late fees or other consequences.
Fidelity National Financial officially acknowledged the cybersecurity attack in a report to the Securities and Exchange Commission on November 19. The statement clarified that several of FNF’s systems, including those related to LoanCare’s escrow accounts and mortgage services, were affected.
It wasn’t until November 28 that LoanCare publicly admitted to being a cyberattack victim. This admission came via their website, which assured customers that there would be no penalties such as late fees or adverse credit reporting due to their inability to process mortgage payments during the incident. However, the website could have been more operational when writing this blog. The same anonymous customer raised additional concerns, such as the implications for their property taxes and bank account security, highlighting the broader personal financial anxieties triggered by the cyberattack.
Dr. David Ramcharan, Chief Information Officer at Texas A&M University-Corpus Christi, provided some insights into the situation. He suggested that resolving such a cyberattack could take considerable time, potentially weeks or even months, depending on whether Fidelity National Financial opts to negotiate with the attackers or restore their systems independently.
Fidelity National Financial has yet to issue public comments beyond its initial SEC filing. This silence leaves many customers anxious and uncertain about their financial obligations and the security of their personal information. The situation underscores the critical need for robust cybersecurity measures and transparent communication strategies in today’s increasingly digital economic landscape.