Nationstar Mortgage ordered to repay $73M to customers

Mortgage-loan servicer failed to provide basic services, used deceptive practices

National /
Dec.December 08, 2020 10:45 AM
Nationstar Mortgage/Mr. Cooper CEO Jay Bray (Photos via iStock; Mr. Cooper)

Nationstar Mortgage/Mr. Cooper CEO Jay Bray (Photos via iStock; Mr. Cooper)

Nationstar Mortgage has been ordered to pay $73 million to roughly 40,000 homeowners in a settlement with the Consumer Financial Protection Bureau.

In a complaint filed by the bureau and 48 states, Nationstar Mortgage, which rebranded as Mr. Cooper in 2017, is accused of failing to provide basic services for the mortgages it serviced from 2012 to 2016, the Associated Press reported. Those include neglecting to tell homeowners if a mortgage was in a loan modification plan, and failing to pay out borrowers’ property taxes.

The company is also accused of deceiving homeowners by failing to tell them that they no longer needed to make mortgage payments and of neglecting to tell homeowners they no longer had private mortgage insurance.

In addition to paying customers for refunds and damages, Nationstar Mortgage will have to pay a $1.5 million fine to the bureau. The company is settling independently with the 48 states, Washington D.C., the U.S. Virgin Islands and Puerto Rico.

In a statement to the AP, the company said it previously knew about these issues and is “pleased to resolve this matter.”

[Associated Press] — Sasha Jones


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