Nationstar Mortgage $5.8 Million Settlement Overview

Nationstar Mortgage has agreed to pay $5.8 million to resolve claims that it violated mortgage servicing laws, allegedly causing some borrowers to lose their homes to foreclosure.

Who’s Eligible?

The settlement benefits two groups of affected homeowners:

• Service Transfer Population: Borrowers whose loans were transferred in bulk to Nationstar between Feb. 1, 2011, and Dec. 18, 2017, became 30 days delinquent within 90 days of the transfer, and whose delinquency resulted in foreclosure.
• Property Preservation Population: Borrowers whose property was inspected by Nationstar, determined to be vacant, and had the locks changed between June 24, 2011, and Dec. 29, 2017. This includes cases where the borrower requested access within 30 days or the property was later reported as occupied within 90 days.

Settlement Details

State attorneys and mortgage regulators alleged that Nationstar committed numerous servicing errors and abuses, causing financial harm to borrowers. Some homeowners reportedly lost their homes due to these alleged violations.

Nationstar, which operates as Mr. Cooper, provides home loans, refinancing, and mortgage services. The settlement was reached with attorneys general and mortgage regulators from all 50 states.

Payout Information

Borrowers may be eligible for a cash payment depending on which settlement group they belong to:

• Service transfer population members may receive payments to remedy the reduction in proceeds realized from foreclosure sales.
• Property preservation population members may receive reimbursements for expenses incurred due to being locked out of their homes.

The settlement website does not provide specific payment estimates. However, class members may have received an estimated amount in the notification letter they received.

Key Dates

• Claim Form Deadline: March 3, 2025
• Final Approval Hearing: December 8, 2020

Case Information

Case Name: The State of Alabama, et al. v. Nationstar Mortgage LLC d/b/a Mr. Cooper

Case Number: 1:20-cv-03551

Court: U.S. District Court for the District of Columbia

Claims Administrator Contact

Phone: 866-404-0137

Settlement Website: NationalNationstarSettlement.com

Class Counsel

The settlement is represented by attorneys from multiple state attorney general offices, including Alabama, Alaska, Arizona, and others.