Is Your Mortgage In Safe Hands with Nationstar / Mr. Cooper?
If your home mortgage originated with or was recently sold to Nationstar (aka: Mr. Cooper), you should probably buckle up; you may be in for a bumpy ride. Consumers have reported a number of issues with the loan servicing company, including everything from late fees for loan payments received 1 day prior to the due date, to lost loan paperwork, lost checks, returned checks, unexplained fees, and significant errors with credit reporting agencies.
Nationstar, now one of the largest mortgage bill collectors in the US, has been accused of countless wrong-doings by its customers for years. In the last year, Nationstar has faced several multi-million-dollar settlements at the state level to resolve allegations of overcharging borrowers, offering “unfair and deceptive” mortgage modifications, and numerous deficiencies and violations, often resulting in consequences for the borrowers including increased risk of foreclosure.
Recently, Nationstar underwent a rebranding campaign, changing the name of its loan servicing division to “Mr. Cooper”. Many have speculated the rebranding is an attempt to put the negative publicity spotlighted by numerous class action lawsuits, settlements, fines and sanctions behind it.
Unfortunately, it doesn’t appear that Nationstar / Mr. Cooper has made any attempt to correct its business practices, as the complaints continue to pour in on the various consumer review websites and class action lawsuits, which continue to be filed for a myriad of questionable business practices.
Thousands of homeowners with Nationstar / Mr. Cooper mortgages have experienced:
- Inaccurate credit reporting.
- Wrongful foreclosure.
- Mortgage abuse.
- Mortgage fraud.
- Credit Reporting Errors.
- Inaccurate Payment History.
- Unable to Qualify for Loan Modifications.
- Lost mortgage paperwork.
- Lost loan files.
- Failed to detect errors in documents.
- “Lost” mortgage payments.
- Illegal foreclosure documents and unfair rejections of loan modifications.
- Reported incorrectly on credit report and failed to remove the error.
- Insurance policy cancelled due to nonpayment.
- Failed to report payments to the credit bureau.
- Failed to pay interest on mortgage funds held in escrow accounts.
- Credit reports pulled without knowledge or authorization, and without reason for doing so.
- Refused to terminate private mortgage insurance (PMI) in accordance with consumers’ mortgage agreements.
- Harassing and illegal debt collection and credit reporting campaign designed to pressure the homeowners into paying more than what the mortgage contract allows.
- Accused of violating the Telephone Consumer Protection Act by robocalling consumers regarding a home loan.
If you experience any of these issues with Nationstar / Mr. Cooper, contact our Consumer Protection attorneys immediately. You may have the right to file suit and, if you win the case, you could receive $1,000 or more!
Nationstar / Mr. Cooper Accused of Blatant Disregard of Facts
An internet search on the company presents an almost unprecedented number of results outlining both personal accounts of problems encountered by clients, as well as incredibly moving editorials on specific, and somewhat unbelievable situations where Nationstar was clearly in the wrong, and yet did nothing to correct their errors. In fact, there are even accounts where the mortgage lender doubled-down and proceeded with foreclosures despite court rulings barring them from proceeding with any action.
The ultimate outcome is often heart-wrenching, as families lose their homes, are forced to file bankruptcy to stop the auction sale of their home, or are unable to act quickly enough to prevent the auction and lose everything in the process.
Anyone who reads the endless stories of blatant disregard of the facts can’t help but wonder, “Why?” Why would Nationstar ignore a homeowner’s desperate plea to review their wrongful foreclosure, with cancelled checks as proof that they made all of their mortgage payments on time. Why would they completely disregard the multiple state-level lawsuits brought by various state attorney generals. How can repeated high dollar settlements not compel the loan servicing company to at least consider changing its business practices?
The Nationstar Business Model: Make Money No Matter What
Perhaps it would help to understand the background of the company. When the housing market crashed in 2008, banks were forced to sell much of their loan business to private entities. These private entities were backed by venture capital and were really the only ones who could afford to take on the steep debt incurred by the housing market crash. However, these entities were driven by making money on the outcome of the defaulted mortgages, and they faced almost no federal scrutiny for their business practices.
Loan modification often makes monthly payments more affordable, and the government wanted to encourage these new non-bank lenders to be generous with approving lower monthly payments to consumers in the form of an incentive program, in the hopes that they would be able to keep their homes and slow the housing foreclosure rate. This was a logical step, since lenders typically earn more from a loan paid in full than they would in a foreclosure situation where they might not be the lender on the new loan.
As a mortgage bill collector, Nationstar’s interests typically align with borrowers’, because foreclosing can be far more expensive than modifying and continuing to service a loan. Especially when the federal government is offering incentive fees in exchange for favorable loan modifications to homeowners.
However, Nationstar took their business model to a whole new level. Nationstar earns fees from selling homes through its auction site, as well as providing new mortgages to winning bidders, and that added business may compete with the company’s interest in keeping borrowers in their homes.
This potential conflict of interest really boils down to one thing; Nationstar makes money no matter what it does.
In one editorial example, Nationstar oversaw the foreclosure of a home. Another family took over the house, winning it through an online auction platform called Homesearch. That family then obtained a mortgage through a company called Greenlight Loans.
The companies all have different names and different roles, but all three are essentially the same company. Homesearch and Greenlight are owned by Nationstar.
The editorial went on to say that several borrowers said that Nationstar required them to list their homes with Homesearch, even after they had found a buyer through their own real estate agent. “Any requirement to use a particular auction site, especially one affiliated with the loan servicer, raises serious concerns,” the Connecticut attorney general, George Jepsen, said in a statement.
How Our Consumer Protection Attorneys Can Help
The Consumer Protection attorneys at Fields Law understand the frustration that our clients feel when they are facing wrongful foreclosure, credit reporting errors, inaccurate payment history data and the damages suffered as a result. Examples of damages include: denied mortgage loan modifications; financing or refinancing; and increased monthly interest charges due to less favorable terms.
The Fair Credit Reporting Act (FCRA) gives consumers the right to file a lawsuit against the mortgage company and the credit reporting agencies, because if a party violates the FCRA, you have the right to sue them, and if you win the case, you could receive $1,000 or actual damages (whichever is greater).