CHARLOTTE, N.C. – Nationstar Mortgage, which operates under the brand Mr. Cooper, was ordered to repay $73 million to roughly 40,000 homeowners for repeatedly failing to provide even the most basic operations as a mortgage servicing company over four years, the Consumer Financial Protection Bureau said Monday.
The CFPB and 48 states alleged in their complaint that Mr. Cooper 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.
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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 about $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, the District of Columbia, the U.S. Virgin Islands and Puerto Rico.
In a statement, the company said it identified these problems several years ago and is “pleased to resolve this matter.”