Connecticut borrowers will get $1M from settlement with mortgage servicer
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HARTFORD, Conn. (Hartford Business Journal) — Connecticut mortgage borrowers are eligible for $1 million from a settlement announced today with servicer Nationstar Mortgage over allegations the firm violated consumer protection laws.
State Attorney General William Tong joined with 50 other attorneys general and federal and state agencies in a lawsuit that resulted in a $86.3 million settlement with Nationstar. Connecticut will also receive $250,000 through the settlement to support additional consumer protection efforts.
The country’s fourth-largest mortgage servicer, Nationstar serviced 685 loans in Connecticut. The settlement relates to the company’s actions i from Jan. 1, 2011, to Dec. 31, 2017.
Doing business as “Mr. Cooper,” Nationstar “grossly mishandled thousands of loans across the country ‒ in the worst of cases needlessly driving certain families into preventable foreclosure,” according to Tong’s statement.
According to the lawsuit filed by the attorneys general, mortgage borrowers suffered damages when Nationstar failed to oversee third-party vendors hired to inspect and maintain properties owned by delinquent borrowers and improperly changed locks on their homes. Other borrowers saw their data lost when Nationstar purchased mortgage servicing portfolios from competitors.
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