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Nationstar Mortgage to refund $73M to borrowers under order

Nationstar Mortgage to refund $73M to borrowers under order

CHARLOTTE, N.C. (AP) — Nationstar Mortgage was ordered to repay $73 million to approximately 40,000 homeowners for repeatedly failing to provide even the most basic operations as a mortgage servicing company over a period of four years, according to order filed with Consumer Financial Protection Bureau on Monday.

The CFPB and 48 states alleged in its complaint that Nationstar failed to do a laundry list of basic services for the mortgages it serviced from 2012 to 2016, from failing to identify mortgages that were in loan modification plans, to failing to disburse borrowers' property tax payments.

The company also failed to inform borrowers when they no longer needed to make private mortgage insurance payments, or kept them paying for private mortgage insurance when they no longer had it.

Nationstar will repay approximately 40,000 borrowers roughly $73 million in refunds and damages, and will pay a $1.5 million fine to the CFPB. The company is settling independently with the 48 states as well as the District of Columbia, U.S. Virgin Islands and Puerto Rico as well.

Updated : 2021-07-27 08:28 GMT+08:00