Mr. Cooper settles lawsuit for $5.8 million

The mortgage company is accused of violating servicing laws that resulted in foreclosures

Mr. Cooper settles lawsuit for $5.8 million

The mortgage company is accused of violating servicing laws that resulted in foreclosures
lawsuit mr cooper

Nationstar Mortgage, which does business as Mr. Cooper, will pay $5.8 million to settle a lawsuit that alleges the mortgage company violated servicing laws that led to some borrowers losing their homes through foreclosure.

The settlement, which was agreed to by attorneys general and mortgage regulators in all 50 states and the District of Columbia, allows some borrowers to receive cash payments. Among those receiving money from the settlement are homeowners who lost their houses after their loans were transferred to Nationstar for servicing between Feb. 1, 2011 and Dec. 18, 2017. The loans must have been 30 days overdue within 90 days of the transfer.

Nationstar is accused of harming homeowners who had their service transferred to the Nationstar for servicing and became delinquent, resulting in foreclosure. Another group of borrowers had their property locks changed by Nationstar, denying them access, according to the lawsuit.

Nationstar has been the subject of past lawsuits, including the Consumer Financial Protections Bureau suing the mortgage company in December 2020, which also accused the mortgage servicer of improperly overseeing transferred loans. Nationstar agreed to pay $91 million to settle the claims. In addition, Nationstar also agreed to pay $110 million to state attorneys general to settle homeowner claims made in various states.

The company faced a separate class action suit that accused the company of repeatedly and unlawfully collecting tens of thousands of unauthorized mortgage loan payments. That case was settled in May 2022.

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