Skip to Content

Nationstar mortgage agreement announced

court-gavel-logo-new-jpg_3564281_ver1.0

BOISE, Idaho (KIFI/KIDK) - The Idaho Attorney General’s Office, 50 other attorneys general, and a variety of other federal and state agencies have reached an $86.3 million settlement with Nationstar Mortgage. 

The company does business as “Mr. Cooper” and is the country’s fourth largest mortgage servicer.  The settlement resolves states’ allegations that Nationstar violated consumer protection laws while servicing loans.

In Idaho, the Idaho Department of Finance said the order includes redress of approximately $278,000 for 300 consumers and civil penalties totaling $750,000 to be distributed evenly among participating states and jurisdictions.  

Nationally, the settlement provides settlement for 55,814 loans between 2011 and 2017.  

“This settlement demonstrates the value of interagency cooperation in supervising mortgage activities,” Idaho Department of Finance Director Patricia R. Perkins said. “By working together, state and federal partners can better address consumer protection issues and enhance the safety of the mortgage servicing market.”

According to the Attorney General’s office, Nationstar began purchasing mortgage servicing portfolios from competitors beginning in 2012 and became the nation’s largest non-bank servicer.  Borrowers who had sought assistance with payments and loan modifications often fell through the cracks.  As a result, borrowers in that category will receive a guaranteed minimum payment of $840 as part of the settlement.

Other borrowers suffered damages when Nationstar failed to oversee third-party vendors hired to inspect and maintain properties owned by delinquent borrowers and improperly changed locks on their homes.  Those borrowers will receive a guaranteed minimum payment of $250.

The company was also directed to publish “servicing standards” for handling certain mortgage loans by January 1, 2021.



Author Profile Photo

News Team

Comments

Leave a Reply

Skip to content