HARRISBURG, Pa. (WHTM) – Attorney General Josh Shapiro announced Monday that his office has secured an $ 86.3 million settlement from Nationstar Mortgage, the nation’s fourth largest mortgage manager. In Pennsylvania, the settlement affected 2,234 loans totaling $ 2.75 million in repayment for those borrowers.
The settlement, in the form of a consent judgment, resolves allegations that Nationstar violated consumer protection laws.
“This company broke the law and took advantage of consumers in Pennsylvania who sought help with their loans,” said AG Shapiro. “I appreciate the work of this multi-state group and consumer advocates in our office who have secured this settlement and will bring relief to borrowers.”
The settlement will provide restitution to consumers in Pennsylvania following an investigation into Nationstar’s conduct between January 1, 2011 and December 31, 2017.
The investigation found that some borrowers, who had requested assistance with payments and loan modifications, fell through the cracks after Nationstar acquired the portfolios of other companies.
These borrowers will receive a guaranteed minimum payment of $ 840 as part of the settlement.
The investigation also found that Nationstar neglected to correct hired third-party companies, which changed the locks on the homes of borrowers who could not repay their loans on time. These buyers will receive a guaranteed minimum payment of $ 250.
A settlement administrator will send eligible borrowers a claim form in 2021.