Jury Resolves Decades Long Dispute Over Servicing

To the defendant goes the spoils. A lawsuit that Freedom Mortgage Company filed against LoanCare LLC over seven years ago ended with a federal jury awarding LoanCare $22.6 million. 

For over 15 years, until April 2016, LoanCare serviced many of Freedom's outstanding mortgage loans until Freedom ended the agreement and transferred all of its servicing in-house. However, LoanCare alleged in a countersuit that Freedom had devised a fraudulent scheme to execute the unwinding of the business relationship to induce LoanCare to transfer and advance funds that would leave Freedom with $111 million of LoanCare’s money. 

The original complaint brought by Freedom against LoanCare alleged a breach of contract, and the same jury awarded Freedom $247,000 for that breach. 

LoanCare celebrated the judgment in a press release. 

"As we celebrate the court's decision, LoanCare remains focused on our mission to deliver superior servicing experiences and the most advanced technology capabilities to lenders, homeowners and investors," said Dave Worrall, president of LoanCare. "This victory only reinforces our resolve to continue innovating, delivering exceptional products, and providing unparalleled customer satisfaction."

Freedom Mortgage Company did not immediately respond to a request for comment.