CONTACT: Charity R. Clark, Chief of Staff, 802-828-3171
Molly Dillon, Deputy Commissioner of Banking, Dept. of Financial Regulation, 802-828-4874
Seventy-Eight Vermonters to Receive $100,000 in Restitution
Attorney General T.J. Donovan and Commissioner of Financial Regulation Michael S. Pieciak announced today that Vermont has joined a settlement with the country’s fourth-largest mortgage servicer, Nationstar Mortgage, over consumer protection and mortgage-servicing violations. Seventy-eight Vermonters have received or will receive relief totaling approximately $100,000 in connection with this settlement, and the State will receive approximately $15,000 in a penalty payment. The violations affected more than 115,000 consumers across the country. The settlement totals $86 million nationally. Nationstar Mortgage currently does business under the name “Mr. Cooper.”
The settlement resolves allegations that Nationstar violated consumer protection and lending laws during its servicing of mortgage loans. The settlement provides restitution for a variety of harms that were identified in the investigation, including failure to take proper steps to assist homeowners who sought payment assistance or loan modification options. In addition, Nationstar failed to oversee third-party vendors hired to inspect and maintain delinquent borrowers’ homes, leading to some homeowners improperly being locked out of their homes. Vermont homeowners who were affected by these practices and may be eligible to benefit from this settlement will be contacted by a claims administrator in 2021 with information about how to receive their payment.
The settlement also requires Nationstar to follow a detailed set of rules or “servicing standards” in how it handles certain mortgage loans. These servicing standards are more comprehensive than existing law and will be in place for three years starting on January 1, 2021.
Attorney General Donovan and Commissioner Pieciak join in this settlement with 50 other state Attorneys General and 51 state and territorial financial regulators. Vermont customers of Mr. Cooper/Nationstar may reach the Department of Financial Regulation’s Banking Division at 888-568-4547 or dfr.bnkconsumer@vermont.gov. A copy of the settlement can be found here.