Recently, you may have seen this Nationstar Mortgage Settlement Lawsuit thing in the headlines and news articles, right? But if you have no idea what we’re talking about, even then you can continue reading because we’re about to share every single detail of this case that has come out so far.
Like, for example, many of you may already know that it is about a company named Nationstar Mortgage (Mr. Cooper) which got hit with this very lawsuit for doing some shady things. Shady things? Like, what exactly? Well, as per the details that are already out, this company actually purposely and wrongly messed up with the loan transfers, which is an actual crime. Not just that though, they even went on to seize homes, and locked people out of their homes. Their own homes? Yes! Sure enough, they were found guilty of these crimes, and as a settlement, they had to pay around $5.8 million to fix it.
But is that the whole story? Well, for those who just wanted to know about this case in brief, that’s pretty much it. But for those who are here for the details, like how it all happened and where things went South, then keep on reading.
First Things First, Who Really Is Nationstar Mortgage?
So, first of all, those who don’t have any idea of what this company is all about, just know that it is just a company that collects mortgage payments, like, it doesn’t actually get out loans but is in charge of the payments. Simple as that! You know, they thought that people would look past their previous mistakes if they just changed the name altogether, but, you know what, people did not forget. We’re actually talking about the name change from Nationstar to Mr. Cooper, which obviously didn’t work at all.
Like, this company has been in trouble a lot, no two ways about that. For a particular instance, you can take a look at the case of 2020, where they were fined $91 million, but why? Well, at that time, they were again doing some shady stuff with the loan transfers, you know, foreclosing on many people who shouldn’t have lost their homes at all. But they did, just because of the mistakes of this company. After that, they had to shell out another $110 million for the settlement money.
And then, back in May 2022, they were sued once again for taking money from borrowers without their permission, you know, like, cashing peoples’ checks when they didn’t have to. That, again, sounds kinda shady, doesn’t it? They took payments that people didn’t authorize, and that’s simply against the law right here in the United States.
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What Did Nationstar Do Wrong This Time?
First, they messed up loan transfers. How exactly? For those who don’t know how it is carried out, well, you see when a mortgage loan moves from one lender to another, everything must be handled properly no matter what. But, from February 1, 2011, until December 18, 2017, Nationstar took over many people’s loans and messed them up. And sure enough, some homeowners fell behind on payments after Nationstar took over their loans, even though they had been current before. Though, keep one thing in mind instead of fixing the issue, Nationstar made things worse. Because of these mistakes, many of these homeowners lost their homes to foreclosure, and that was one of the biggest issues or highlights of this case.
Second, like, can you even imagine that they locked people out of their own homes? Yes, that’s another allegation against them, which has so far proven to be absolutely correct. Just to give you perspective on things, you see, between June 24, 2011, and December 29, 2017, they changed the locks on houses they thought were vacant. And? Well, some of these houses weren’t even truly abandoned, people still lived there! Some homeowners could get back in within 30 days but others had their homes illegally identified as vacant and were locked out for good. Like, really? Yes!!
Who Can Get Money from This Settlement?
Alright, now onto the most important part of this post today. So, you may be wondering whether are you someone eligible for the statement money in this case or not, right? For that, just know that if Nationstar took over your mortgage from 2011 to 2017 and you lost your home in foreclosure because of Nationstar’s mistakes, you have a chance here. How to be certain about that? Well, keep on reading, you’re about to find that out.
Also, if you were locked out of your home by Nationstar while still living there, you might be eligible for compensation as well. Like, if you’re a homeowner who qualifies, you should have gotten a notice in December 2024. Sure enough, if you got a notice, submit your claim by March 3, 2025. What’s the best bit about it all? Well, you see, if your situation fits what the lawsuit is about, they don’t have to prove you lost money, you may receive a check.
How much will you get? That depends on how many people file claims. But in the beginning, homeowners are estimated to receive more. Really? Well, kinda yes!
Why This Nationstar Mortgage Settlement Lawsuit Became A Big Thing In The Headlines?
Remember, we already told you that this isn’t the first time Nationstar has been in trouble. Yes, the same day it announced the settlement, the Consumer Financial Protection Bureau (CFPB) fined them again. Again? Yes!!
Like, COFB forced Nationstar to pay $73 million to 40,000 homeowners for loan transfer problems. To add to that, they had to suffer a penalty of $1.5 million. All in all, since 2020 only Nationstar incurred over $91 million in settlements and penalties, which is a BIG number if you think about it for a sec. That is a lot of money and shows how serious their mistakes were at least, right?
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