OLYMPIA—Attorney General Bob Ferguson and the Washington State Department of Financial Institutions (DFI) announced today that more than 1,500 Washingtonians will receive letters in the mail to claim their share of more than $2 million as the result of a multistate resolution with Nationstar, one of the country’s largest mortgage servicers.
Eligible Washingtonians can expect to receive a payment of $250 or $840, depending on their individual circumstances. Those amounts could increase if fewer individuals than expected file claims. Claims must be submitted by March 3, 2025.
The claims forms and letters explaining the process were mailed earlier this month and should begin arriving in mailboxes this week.
“This money will help more than 1,500 Washingtonians after Nationstar failed to fairly service their loans,” Ferguson said. “Buying a home is a significant investment and mortgage companies must play by the rules. We will keep working with government partners to protect consumers when they do not.”
“It is imperative to make sure the people of Washington are compensated when harm is done,” DFI Director Charlie Clark said. “As the state’s mortgage industry regulator, DFI wants to ensure all homeowners impacted by this company’s actions are compensated. Please make sure to open the mailing and return the claim form by the deadline.”
The 2020 multistate resolution with Nationstar, also known as Mr. Cooper, is the result of a multiyear investigation by state and federal government partners, including Washington state’s DFI and Attorney General. Nationstar was required to pay more than $90 million to consumers nationwide for numerous violations of state and federal law.
The violations, many resulting from records mismanagement, included charging impermissible fees, missing tax payments from borrower escrow accounts, and failing to terminate private mortgage insurance when conditions were met, among other mismanagement. In some cases, Nationstar’s poor recordkeeping caused wrongful foreclosures and homeowners to inappropriately have the locks changed at their homes.
These violations affected more than 115,000 consumers nationwide, including more than 1,500 Washingtonians.
The Attorney General’s Office joined 50 other state attorneys general, DFI and 52 other state regulators, and the federal Consumer Financial Protection Bureau to investigate and pursue legal action against Nationstar. As part of the multimillion-dollar resolution with all of those agencies, more than 1,500 consumers in Washington will be paid more than $2 million. Nationstar also must pay $750,000 in civil penalties to be distributed evenly among all of the participating states and jurisdictions.
The letters arriving in mailboxes this week include details about the claims process, the claim form and answers to commonly asked questions. Homeowners with additional questions can call toll free at 1-866-404-0137 or email administrator@nationalnationstarsettlement.com.
Additional information is available at NationalNationstarSettlement.com.
SOURCE: Washington State Attorney General Office
Author: Lynnwood Times Staff
