Yes, after being in the spotlight for too long now, finally, there has been some good news, aka the settlement news, in the case against Nationstar Mortgage. That’s precisely why we’re talking about the Nationstar Mortgage Settlement Lawsuit, so let’s just get to the details right away.
Why Did People Sue Nationstar Mortgage At All? Like, What’s So Big Of An Issue Here?
For that, to understand it all very well, we must check out the backstory first, shall we?
So, let’s clear out the basic facts first, and it is a 100% true that Nationstar Mortgage LLC (which now goes by Mr. Cooper) is among the largest mortgage servicers in the U.S. And just in case you’re hearing about them for the very first time here, see, they are the ones who take care of things like monthly payments, escrow accounts, and foreclosures for millions of homeowners right here in the country.
According to more technical details, actually, from 2011 to 2017, numerous loans originated at other companies were transferred over to Nationstar for management. It’s all just a standard procedure, right? At least that’s how it appears, correct?
But it is just in this case that we came to know about how some regulators and attorneys general claim that some of these transfers were mishandled.
Like how, though? The main issue?
Going into that briefly, see, one of the most typical problems for borrowers was that they remembered being caught up with their payments, like they were current, and very soon after their loans were transferred to new servicers, they were being reported as past due. And if you don’t know what issue this can cause, see, in actuality, it happened with some people, where it caused wrongful foreclosures. The result? Oh, a big change, actually, people were losing their homes when they definitely should not have been. So now you get why there is so much outrage?
That wasn’t it, though; there is more to this sketchy thing than you realize, like several times, Nationstar and/or their contractors were accused of changing locks or leaving the houses labeled as “vacant” before the foreclosure was properly finished. That doesn’t sound like a good thing to do with homeowners.
And no doubt, when this unfair thing was going on, no doubt, the authorities had to get involved. And that’s what happened, and that’s why we’re seeing this Nationstar Mortgage Settlement Lawsuit in action. All 50 states are on it, by the way.
What Were the Main Accusations?
Let’s get to the real part now, where we talk about the allegations and accusations being made against this big firm, shall we?
So, right now, Nationstar was blamed for:
- Failing mortgage transfers correctly, especially when the loans were transferred from other companies, and that’s the big one.
- Not properly managing loans that were at risk of default, and this led, in some cases, to unnecessary foreclosures, which shouldn’t have been the case in the first place.
- Even after these big mistakes, they went ahead with sealing out the people and their properties before everything had been legally finalized.
- That’s it? Nah, they are even being blamed for charging for property inspection or “maintenance” fees that were not properly authorized.
Where Things Stand Now (And the Good News)
Actually, even after all this, there is still an option of the $5.8 million settlement, and the filing deadline was March 3, 2025. So, those who were eligible for this can apply and get their payment.
And what big change came after this case is that Nationstar (Mr. Cooper) has already changed significantly, and that’s what a lot of people were hoping for. Speaking of statistics here and financial numbers, actually, the company has paid over $200 million in total through various settlements.
