Letters headed to some WA homeowners following $2M settlement
STAFF REPORT | Hagadone News Network | UPDATED 1 year, 9 months AGO
OLYMPIA — More than 1,500 Washingtonians will receive letters in the mail to claim their share of more than $2 million, according to a statement issued Wednesday by the office of Attorney General Bob Ferguson and the Washington State Department of Financial Institution.
The windfall is the result of a multistate resolution with Nationstar, one of the country’s largest mortgage servicers, according to the statement.
Eligible Washingtonians can expect to receive a payment of $250 or $840, depending on their individual circumstances, according to the statement. 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, the statement said.
The 2020 multistate resolution with Nationstar, also known as Mr. Cooper, is the result of a multiyear investigation by state and federal government partners, according to the statement. 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, the agencies wrote. In some cases, Nationstar’s poor record-keeping caused wrongful foreclosures and homeowners to have the locks inappropriately changed at their homes. These violations affected more than 115,000 consumers nationwide, according to the statement.
“This money will help more than 1,500 Washingtonians after Nationstar failed to fairly service their loans,” Ferguson wrote in the statement. “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 letters arriving in mailboxes this week include details about the claims process, the claim form and answers to commonly asked questions, accordint to the statement. Homeowners with additional questions can call toll free at 1-866-404-0137 or email [email protected].
“It is imperative to make sure the people of Washington are compensated when harm is done,” DFI Director Charlie Clark wrote in the statement. “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.”
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