Investigation into Nationstar Mortgage is finalized, Washington DFI says
A multiyear investigation into Nationstar Mortgage LLC has been finalized, and some Washington residents will recoup financial benefits because of it.
The Washington State Department of Financial Institutions has found that Nationstar Mortgage LLC violated state and federal laws.
Among them:
▪ Impermissible mortgage origination charges.
▪ Missed tax payments from borrower escrow accounts.
▪ Failure to terminate private mortgage insurance when conditions were met.
▪ Mishandling of loan modifications and servicing transfers.
▪ Wrongful foreclosures.
In Washington state, the order includes $2.11 million for 4,766 consumers and civil penalties of $750,000 to be distributed evenly among participating states and jurisdictions.
“Mortgage regulations provide critical protections for Washington homeowners,” DFI Director Charlie Clark said in a statement.
“It is critical that all of our mortgage licensees, including some of the largest companies, operate in accordance with the law. Today’s action demonstrates that regulators around the country can work together to ensure that large companies like Nationstar Mortgage LLC do not take advantage of struggling homeowners.”
For more information on this story and the ruling, you can click the link here.
This story was originally published December 8, 2020 at 5:45 AM with the headline "Investigation into Nationstar Mortgage is finalized, Washington DFI says."
