Mortgage servicer to pay $74 million settlement for nationwide complaints
Nationstar Mortgage LLC, a mortgage-loan servicer, has been ordered to pay over $74 million to settle complaints from approximately 40,000 borrowers.
All 50 state attorneys general, as well as the Consumer Financial Protection Bureau (CFPB) filed lawsuits filed in federal court on Monday that alleged Nationstar failed to properly oversee third-party vendors or respond to borrowers’ complaints, as well as other offenses.
In a press release, the CFPB said that Nationstar, which is owned by Mr. Cooper Group Inc., has agreed to pay around $73 million to the group of borrowers as well as a $1.5 million penalty. The statement estimates the whole deal, along with state settlements, will yield around $85 million in recoveries for consumers and more than $6 million in penalties and fees.
In a separate statement Nationstar, as well as two other servicers: U.S. Bank National Association and PNC Bank, agreed with the Justice Department to pay more than $74 million to remedy “serving errors” that negatively impacted borrowers in bankruptcy.