Nationstar Mortgage, which operates under the Mr. Cooper brand, has been ordered to pay back $ 73 million to around 40,000 homeowners for repeatedly failing to provide the most basic operations as a four-year mortgage service company, the Consumer Financial Protection Bureau said Monday.
The CFPB and 48 states alleged in their complaint that Mr. Cooper failed to compile a basic laundry service list for the mortgages he managed from 2012 to 2016, ranging from failure to identify mortgage loans subject to loan modification plans for non-payment of borrowers property tax payments.
The company also failed to notify 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 reimburse approximately 40,000 borrowers, or approximately $ 73 million in repayments and damages, and pay a fine of $ 1.5 million to the CFPB. The company operates independently with all 48 states, the District of Columbia, the US Virgin Islands, and Puerto Rico.
In a statement, Cooper’s chief executive officer Jay Bray said the company was “happy to resolve this issue.”
“When these issues were identified several years ago, we immediately reimbursed our affected customers and invested in process improvements to prevent them from recurring,” said Bray. “The results of these improvements and investments are evident in key customer experience metrics, including the number of customer complaints, which have fallen to record levels. “