CONCORD – Attorney General Gordon MacDonald and Banking Commissioner Jerry Little announce that their agencies have joined with 52 other state regulators, 51 state attorneys general and the federal Consumer Financial Protection Bureau (CFPB) in a settlement agreement with Nationstar Mortgage LLC, d/b/a Mr. Cooper, one of the largest mortgage servicers in the nation, closing a multiyear investigation of the company.
These violations affected more than 115,000 consumers nationwide including 327 New Hampshire consumers. The settlement order includes redress of $565,914 for 327 New Hampshire consumers and administrative penalties to be distributed among participating states and jurisdictions. The New Hampshire Banking Department will receive $14,705.88 in an administrative penalty and $20,000 towards administrative costs.
The settlement imposes significant consumer remediation and penalties on the company for multiple residential mortgage origination and servicing-related violations of state and federal consumer protection laws. These violations include 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; and wrongful foreclosures.
The coordinated government agreements assessed four main penalties and organization changes nationwide:
1) Refunds and other redress approaching $90 million to more than 115,000 consumers in 53 states and jurisdictions;
2) Civil monetary penalties and government reimbursement in excess of $6.5 million;
3) Enhanced servicing standards for three years; and
4) Additional regulatory oversight and corporate disclosure going forward to ensure the company maintains adequate risk and compliance programs.
These violations affected more than 115,000 consumers nationwide including 327 New Hampshire consumers. The settlement order includes redress of $565,914 for 327 New Hampshire consumers and administrative penalties to be distributed among participating states and jurisdictions. The New Hampshire Banking Department will receive $14,705.88 in an administrative penalty and $20,000 towards administrative costs.
“Today’s complex, multi-state, multi-jurisdiction, multi-provider financial service system can present challenges for agencies charged with providing consumer protection at the local level. This settlement agreement shows how cooperation across agencies and jurisdictions can unwind that complexity and generate strong results for the protection of New Hampshire consumers,” said Bank Commissioner Jerry Little.
The special inspector general for the Troubled Asset Relief Program and her staff provided technical support during the examination resolution process. Additionally, state regulators addressed servicing issues impacting borrowers in bankruptcy in coordination with the United States Trustee Program, a component within the federal Department of Justice.
This final settlement order resolves all outstanding issues flowing from coordinated CFPB and state regulator examinations that began in 2014. State regulators retain jurisdiction over this order and nothing in the agreement impacts state regulators from supervising the ongoing licensing and compliance obligations of Mr. Cooper. Should additional violations occur, or if issues are not addressed sufficiently, the company remains subject to further regulatory actions.
The settlement agreement and consent order may be found at [www.csbs.org/2020-settlement-agreement-and-consent-order