Nationstar Mortgage, a leading mortgage servicing company, is currently under federal investigation for allegedly charging unlawful mortgage fees. The company has been accused of adding unauthorized fees to borrowers' accounts, causing significant financial harm.
The investigation, led by the Consumer Financial Protection Bureau (CFPB), aims to determine whether Nationstar's practices comply with federal regulations. Nationstar has not commented on the investigation, but the CFPB has confirmed that it is reviewing the company's fees and practices.
Borrowers who have been affected by Nationstar's alleged unlawful fees may be able to seek relief through the CFPB's complaint process.
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Attorney General Finalizes Investigation
The Attorney General's investigation into Nationstar Mortgage has finally come to a close. The investigation was initiated in response to allegations of faulty foreclosure procedures and other improper lending practices.
Nationstar Mortgage was accused of mishandling foreclosures, including serving foreclosure notices on the wrong people and failing to properly review loan documents.
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The company was also accused of not having the necessary paperwork to proceed with foreclosures, which led to a halt in the foreclosure process.
The investigation found that Nationstar Mortgage had indeed engaged in these improper practices, resulting in financial losses for many homeowners.
Homeowners who were affected by Nationstar Mortgage's actions may be eligible for compensation, although the specifics of the compensation process have not been made public.
The Attorney General's office has not yet released a statement on the details of the compensation process or how homeowners can apply.
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Court Cases
Nationstar Mortgage has been the subject of a federal investigation, and several court cases have shed light on the company's practices.
One notable case is Akowskey v. Nationstar Mortg., LLC, where a federal court in Florida ruled on the subject-matter waiver doctrine.
The subject-matter waiver doctrine provides that a party who injects into the case an issue that is not part of the original complaint cannot later raise that issue as a defense.
This doctrine was cited in Akowskey v. Nationstar Mortg., LLC, No. 2114487, 2023 WL 112061, at *3 (S.D. Fla. Jan. 5, 2023), where the court applied it to dismiss a defendant's defense.
The court's decision in Akowskey v. Nationstar Mortg., LLC highlights the importance of carefully considering the scope of a complaint and the potential implications of introducing new issues into a case.
The federal investigation into Nationstar Mortgage has led to a number of court cases that have exposed the company's practices and shed light on the subject-matter waiver doctrine.
Frequently Asked Questions
Is there a class action lawsuit against Nationstar Mortgage?
Yes, Nationstar Mortgage was involved in a class action lawsuit in 2021, which was resolved with a $5 million settlement. The lawsuit claimed the company sent incorrect ACH entries to mortgage borrower bank accounts.
What happened to Nationstar's mortgage?
Nationstar Mortgage was ordered to pay $73 million for failing to properly service mortgages from 2012 to 2016. This affected approximately 40,000 homeowners who were entitled to compensation.
Sources
- https://www.ag.idaho.gov/newsroom/wasden-announces-86-3-million-multistate-settlement-with-mortgage-servicer-nationstar/
- https://www.njoag.gov/ag-grewal-announces-new-jerseys-participation-in-86-3-million-consumer-financial-protection-settlement-with-nationstar-mortgage/
- https://www.classaction.org/news/nationstar-charged-florida-mortgage-borrowers-unlawful-fees-in-payoff-statements-lawsuit-alleges
- https://www.michigan.gov/ag/news/press-releases/2020/12/07/ag-difs-finalizes-investigation-of-national-mortgage-servicers-misconduct
- https://casetext.com/case/akowskey-v-nationstar-mortg-7
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