CFPB mortgage servicing settlement

by David Park, NAFCU Compliance Blog

Last week, the Consumer Financial Protection Bureau (CFPB) filed a complaint and proposed judgment against Nationstar Mortgage LLC, doing business as Mr. Cooper, for alleged violations of the Consumer Financial Protection Act, Real Estate Settlement Procedures Act (RESPA), Regulation X and the Homeowners Protection Act. The CFPB announced that its actions were part of joint effort between state regulators, state attorneys general and the CFPB. If the proposed judgment is entered by the court, Nationstar would have to pay:

  • About $73 million to redress consumer harm to more than 40,000 borrowers; and
  • A $1.5 million civil money penalty to the CFPB.

When combined with the concurrent state actions against Nationstar, the CFPB announced that the total monetary outlay related to Nationstar’s actions should approximate almost $85 million for adversely affected consumers to date and more than $6 million in other fees and penalties.

 

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