Mr. Cooper Settles Complaint For Unlawful Servicing Practices
The Consumer Financial Protection Bureau previously filed a complaint and proposed stipulated judgment and order against Nationstar Mortgage, LLC which operates as Mr. Cooper, alleging that Nationstar violated multiple Federal consumer financial laws, causing substantial harm to the borrowers whose mortgage loans it services.
According to a press release, the proposed judgment and order, if entered by the court, would require Nationstar to pay approximately $73 million in redress to more than 40,000 harmed borrowers. Additionally, it would require Nationstar to pay a $1.5 million civil penalty to the Bureau. The CFPB stated that attorneys general from all 50 states and the District of Columbia and bank regulators from 53 jurisdictions covering 48 states and Puerto Rico, the Virgin Islands, and the District of Columbia have also settled with Nationstar today and their settlements are reflected in separate actions, concurrently filed in the United States District Court for the District of Columbia.
"Mortgage servicers are entrusted with handling significant financial transactions for millions of Americans, including struggling homeowners. Nationstar broke that trust by engaging in unfair and deceptive practices prohibited by the Consumer Financial Protection Act of 2010, as well as violations of the Real Estate Settlement Procedures Act and the Homeowner’s Protection Act," said CFPB director Kathleen L. Kraninger. "Today’s action is the culmination of a multi-year effort working with our state partners to investigate Nationstar’s failings, which resulted in substantial consumer harm. We had a strong partnership with our state counterparts in this case and I thank them for all their support in this case."
"This settlement demonstrates the crucial role of state financial services regulators in ensuring that homeowners are protected as they obtain and pay down their mortgages—especially homeowners who may be struggling with making their payments," said Illinois Department of Financial and Professional Regulation secretary Deborah Hagan. "This resolution demonstrates that a commitment to government coordination provides a path to efficient, effective, and comprehensive outcomes for both consumers and for Mr. Cooper, who will be held to the highest operational standards as it continues to provide mortgage services across the nation."
Click here for more on the settlement.
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