Massachusetts Attorney General Maura Healey has announced a settlement
with Nationstar Mortgage LLC over charges that the company violated the Massachusetts Act to Prevent Unnecessary Foreclosure by failing to help homeowners in the state avoid foreclosure.
Under the terms of the settlement, Nationstar will set up a loan modification program that will provide millions of dollars in borrower relief in the form of principal reductions. The company, which does business under the Mr. Cooper brand, will also pay $500,000 in restitution to certain foreclosed-upon borrowers, and it will be forced to provide the loan modification review protections required by state law for borrowers who fall into default in the future. Between 500 and 600 Massachusetts residents are eligible for loan modification review under the terms of the settlement, while more than 100 foreclosed-upon borrowers will be eligible for restitution.
“In Massachusetts, mortgage servicers are required by law to help prevent unnecessary foreclosures and keep families in their homes,” said Healey. “Nationstar failed to stop foreclosures and this settlement gives homeowners in the hardest hit areas in Massachusetts a chance to stay in their homes. It also sends a clear message that we will hold accountable companies that are not following the law.”