Olympia – The Washington State Department of Financial Institutions (DFI) and the Attorney General’s Office announced today that more than 1,500 people in Washington are expected to receive letters in the mail starting this week from the Nationstar settlement administrator. The mailing includes instructions on how recipients may claim their share of more than $2 million as the result of a multistate settlement agreement with Nationstar (also known as Mr. Cooper), one of the country’s largest mortgage servicers.
The forms were mailed earlier this month along with letters explaining the claims process and should begin arriving in mailboxes this week. Claims forms must be submitted by March 3, 2025.
The 2020 settlement was the result of a multiyear investigation by state and federal government partners, including Washington state’s DFI and Attorney General. Nationstar Mortgage LLC, d/b/a Mr. Cooper was required to pay more than $90 million for numerous violations of state and federal law.
Significant consumer remediation and penalties were imposed on the company for multiple residential mortgage origination and servicing-related violations of state and federal laws, including impermissible mortgage origination fees and charges; missed tax payments from borrower escrow accounts; failure to terminate private mortgage insurance when conditions were met; mishandling of loan modifications and servicing transfers. In some instances, Nationstar inappropriately had the locks changed at homes and even caused homeowners to endure wrongful foreclosures.
These violations affected more than 115,000 consumers nationwide, including more than 1,500 in Washington State.
DFI joined 52 other state regulators, 51 state attorneys general and the federal Consumer Financial Protection Bureau to investigate and pursue legal action against Nationstar. As part of a multimillion-dollar settlement 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.
“It is imperative to make sure the people of Washington are compensated when harm is done,” DFI Director Charlie Clark noted. “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.”
“This money will help more than 1,500 Washingtonians after Nationstar failed to fairly service their loans,” Attorney General Bob 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.”
The information from the Settlement Administrator includes an explanatory letter, the claim form, and answers to commonly asked questions. If homeowners have additional questions not answered in the mailing, additional information can be found at:
- Visit NationalNationstarSettlement.
com - Call the settlement administrator toll free at 1-866-404-0137; or
- Email the settlement administrator at: administrator@
nationalnationstarsettlement. com.
