SALT LAKE CITY, UTAH — The State of Utah, in coordination with dozens of state and federal government partners, announced the closure of a multiyear investigation of Nationstar Mortgage LLC, d/b/a Mr. Cooper, one of the largest mortgage servicers in the nation. The closure includes a settlement for Utah consumers totaling over $657,000, with 556 Utah loans affected.
The investigation and settlement stemmed from multiple residential mortgage origination and servicing-related violations of state and federal laws, including impermissible mortgage origination fees and 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; and wrongful foreclosures.
Utah’s Department of Financial Institutions, Department of Commerce (Division of Consumer Protection), and Attorney General’s Office joined with 52 other state regulators, 50 other state attorneys general and the federal Consumer Financial Protection Bureau in the actions. The special inspector general for the Troubled Asset Relief Program and her staff provided technical support during the examination resolution process. Additionally, state regulators addressed servicing issues affecting borrowers in bankruptcy in coordination with the United States Trustee Program, a component within the Department of Justice.
The coordinated government agreements assessed four main penalties and organization changes:
- Refunds and other redress approaching $90 million to more than 115,000 consumers in 53 states and jurisdictions
- Civil monetary penalties and government reimbursement in excess of $6.5 million
- Enhanced servicing standards for three years
- Additional regulatory oversight and corporate disclosure going forward to ensure the company maintains adequate risk and compliance programs