The Nationstar Mortgage settlement lawsuit has been a huge court fiasco with thousands of homeowners nationwide. Improper loan servicing, illegal foreclosure procedures and violations of consumer protection laws have resulted in gargantuan settlements. As a homeowner with a mortgage that is serviced by Nationstar, it’s important to know the facts of this lawsuit and what it means.
- History of the Nationstar Mortgage Settlement Lawsuit
The Nationstar Mortgage settlement lawsuit was the result of complaints that the mortgage servicer had been paying incorrectly, handling loan modifications inappropriately, and foreclosing improperly on property. Nationstar, previously Mr. Cooper, is a United States non-bank mortgage servicer giant that has been under the scrutiny of regulators and consumer organizations in the last decade.
Some of the homeowners also complained that they were overcharged, had their loan balances inflated, and even lost their homes due to servicing mistakes in the loans. The lawsuit has totalled multi-millions of dollars in settlements in an attempt to repay the victims and enforce compliance with federal standards.
- Excessive Fees in the Nationstar Mortgage Settlement Lawsuit
The Nationstar Mortgage settlement lawsuit does level some very serious accusations against the mortgage servicer giant. Some of the most prominent of plaintiff accusations include:
Servicing abuse: Borrowers asserted that Nationstar abused payments, which resulted in delinquency reporting errors and unjustifiable fees.
Illegal Foreclosures: The majority of homeowners who were foreclosed on illegally, despite the fact that they were attempting to negotiate loan modifications or were in non-default.
Incomplete or Incorrect Information: Homeowners alleged that Nationstar gave them incomplete or incorrect information regarding their mortgage accounts.
Denial or Delay of Loan Modifications: Nationstar was also alleged to deny or delay loan modifications to enable struggling homeowners to stay in their homes.
These allegations led to government investigations, class-action lawsuits, and regulatory fines, and needed a settlement to provide relief to struggling borrowers.
- Settlement Terms and Relief to Homeowners
Nationstar Mortgage settlement lawsuit has cost Nationstar dearly in terms of financial penalties and has also led Nationstar to revise its consumer protection policy. As per the settlement agreement:
Monetary Relief: Homeowners who were improperly foreclosed or unfairly charged high fees can be provided monetary relief.
Loan Modifications and Amendments: Nationstar will have to provide loan modifications like rate reduction and fee waiver, to the eligible borrowers.
Better Business Practices: The Company should bring its mortgage servicing operation to the federal and state levels.
Regulatory Control: Nationstar is under stricter supervision so that such abuse is prevented in the future and homeowners spared further exploitation.
Homeowners who believe they can seek restitution are compelled to go to official settlement centres and negotiate with legal professionals how claims may be filed.
- How Homeowners Can Protect Themselves Going Forward
Since the Nationstar Mortgage settlement case doesn’t exist anymore, homeowners should be cautious to save their money and rights. Some recommendations include:
Review Mortgage Statements: Double-check that all the payments are being processed as directed and no additional hidden unexpected charges are being imposed.
Maintain a Record of All Communications: Keep a record of emails, letters, and phone calls with mortgage servicers to refer to if there is ever a future possible dispute.
Know Your Rights: Learn about federal consumer protection laws such as the Real Estate Settlement Procedures Act (RESPA) and the Fair Debt Collection Practices Act (FDCPA).
Speak with an Attorney: If you are experiencing an issue with your mortgage servicer, you may want to consult with a consumer protection attorney.
Conclusion
The Nationstar Mortgage settlement lawsuit is a wonderful chance to make mortgage servicers pay for what they’ve done. Though the settlement has been an immense blessing to many homes, it must be done again in the future to discourage this type of abuse. If you’re a customer and/or a former Nationstar customer, and you were injured, we suggest you take action now to possibly claim the protection and restitution you deserve.