- Posted by Hostmaster
- On July 27, 2018
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What do California, Massachusetts, and New York have in common? Within the last eight months, all three States have levied heavy fines against Nationstar, now doing business as Mr. Cooper, for illegal practices. In California the Company agreed to a $9.2 million fine for allegedly overcharging borrowers and for failing to resolve their complaints. In Massachusetts, the Company was hit with a fine for allegedly offering borrowers “unfair and deceptive” loan modifications. In April this year, settled with the New York State Department of Financial Services, agreeing to pay a $17 million fine.
“DEFICIENCIES AND VIOLATIONS”
The New York settlement was based on that State’s charge that Nationstar had committed “numerous deficiencies and violations” of the State’s banking laws between 2011 and 2014. Those included flaws in its document retention such that Company was unable to show compliance with consumer protection laws, and its information technology systems sufficient to demonstrate that its auditing processes were accurate. Interestingly, the State noted that consumer complaints against Nationstar had increased almost tenfold between 2011 and 2014. Those complaints largely centered around errors in processing payments and ordering forced-placed insurance when the borrower’s policy hadn’t lapsed.
ESCAPING THE PAST?
Apparently in a move to escape its sordid past, Nationstar changed its name to Mr. Cooper last year. But has a change in its business practices come with a change in its name? Only time will tell. Our advice to those with Nationstar/Mr. Cooper mortgages is to carefully review every monthly statement for accuracy. For those engaged in a loan modification process with Mr. Cooper, make sure to read the fine print so that you understand it. If questions arise, do not hesitate to seek answers.
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Kathryn Eyster contributed to this article