Nationstar Settles with Regulators in Arkansas, Elsewhere Over Mortgage Practices

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Nationstar Mortgage LLC of Dallas will pay refunds and other redress approaching $90 million, including redress of $517,292 to 490 consumers in Arkansas, the state Securities Department said Monday.

The settlement comes after the Consumer Financial Protection Bureau and 48 states alleged that Nationstar, which does business as Mr. Cooper, failed to perform basic services for mortgages serviced from 2010 to 2015, from failing to identify mortgages that were in loan modification plans, to failing to disburse borrowers’ property tax payments.

In all, more than 115,000 consumers across the country will receive payments from Nationstar, which has also agreed to enhanced servicing standards for three years and additional regulatory oversight and corporate disclosure to ensure the company maintains adequate risk and compliance programs, the state Securities Department said.

“This settlement holds Mr. Cooper accountable for harm done to Arkansas homeowners and requires a change in behavior,” Securities Commissioner Eric Munson said. “A home is the largest purchase many people will make in their lifetime, so it is important that mortgage servicing companies know that we are watching.” 

In a statement, Mr. Cooper Chairman and CEO Jay Bray said the company was pleased to resolve the matter. 

“When these issues were identified several years ago, we immediately made restitution to our impacted customers and invested in process improvements to prevent reoccurrence,” he said. “Since then, we have continued to invest in technology, people, and leadership to ensure that our compliance and risk management programs not only meet our regulators’ expectations but also support sustainable growth and maintain our position as an industry leader.”

Publicly traded Mr. Cooper Group operates two primary brands, Mr. Cooper and Xome, and is one of the largest home loan servicers in the country.