Investigation of Nationstar Mortgage LLC, d/b/a Mr. Cooper is Finalized
NASHVILLE, TENNESSEE— The Tennessee Department of Financial Institutions has entered into a settlement agreement and consent order arising out of a state and federal regulator coordinated multiyear investigation of Nationstar Mortgage LLC, d/b/a Mr. Cooper, one of the largest mortgage servicers in the nation, the Department announced today.
In taking this action, the Tennessee Department of Financial Institutions joined with 52 other state regulators, 51 state attorneys general, including the Tennessee State Attorney General, the federal Consumer Financial Protection Bureau as well as the United States Trustee Program, a component within the Department of Justice.
Pursuant to coordinated government agreements, consumer remediation and penalties were imposed on the company for multiple residential mortgage origination and servicing-related issues. Additionally, the coordinated government agreements provide for enhanced servicing standards for three (3) years and additional regulatory oversight and corporate disclosures going forward to ensure the company maintains adequate risk and compliance programs.
More than 115,000 consumers nationwide were impacted. In Tennessee, the order includes redress approaching $1.8 million for approximately 1500 consumer accounts. Civil money penalties totaling $750,000 will be distributed evenly among participating states and jurisdictions.
Many impacted consumers have already received refunds and more will be contacted by a settlement administrator in the coming weeks.
Today’s final order resolves all outstanding issues flowing from coordinated CFPB and state regulator examinations that began in 2014. State regulators retain jurisdiction over this order and nothing in the agreement impacts state regulators from supervising the ongoing licensing and compliance obligations of Mr. Cooper. Should violations occur, or if issues are not addressed sufficiently, the company remains subject to further regulatory actions.
The settlement agreement and consent order may be found at [www.csbs.org/2020-settlement- agreement-and-consent-order].
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