Mortgage servicer Nationstar, which does business as Mr. Cooper, will pay out $86.3 million, including $79.2 million in restitution, for multiple servicing errors since 2011, New York State Attorney General Letitia James announced Monday.
The agreement struck with 50 state attorneys general will see 2,363 borrowers in New York State receive, collectively, $4.5 million, either as a check or as credit toward their mortgages.
Borrowers who sought assistance with payments and loan modifications but fell through the cracks will get a guaranteed minimum payment of $840. Borrowers whose locks were improperly changed by third-party inspectors and property maintainers will receive a minimum of $250.
According to the New York attorney general’s office, 55,814 Americans nationwide suffered financial harm. Thousands were foreclosed on when their loans were transfered to Nationstar, the fourth-largest mortgage servicer in the United States.
“Far too often, corporate greed has been a barrier to millions of families trying to attain the American Dream of homeownership,” Attorney General James said in a press release. “Our work on this case will directly help thousands of New York homeowners and hold Nationstar mortgages servicer accountable for putting profits over people.”
The agreement holds Nationstar to enhanced mortgage servicing standards for three years, beginning next month, including greater protections for borrowers with limited English proficiency, Ms. James’s office stated.
According to the release, Nationstar began purchasing mortgage servicing portfolios from competitors in 2012 and grew into the nation’s largest non-bank servicer.
Staff Writer on Dec 8, 2020