It could be that you’re hearing a lot about this Nationstar Mortgage Settlement Lawsuit in the headlines recently, and that’s just because it really is a big thing. Like, the blunder that Nationstar Mortgage did was so big and impacted so many people that literally all the 50 states and Washington, D.C. attorney generals went ahead to file this lawsuit. As per the details that are already out, well, Nationstar Mortgage, which is also known by the name Mr. Cooper is facing this lawsuit specifically because they violated some of the mortgage servicing laws in the country. And sure enough, when the case progressed, the company admitted their wrongdoing, and now they have straight up agreed to settle this case with a huge settlement amount of $5.8 million. Though the thing is that this final decision to approve the settlement was actually made way back in 2020. Then why is this case in the headlines recently? Let’s find that out.
What Exactly Did They Do Wrong?
Let’s first go over what wrong things Nationstar Mortgage did and why this Nationstar Mortgage Settlement Lawsuit even became a thing against them. Here:
There were two main problems with how Nationstar treated borrowers.
If you’re thinking that this was just some recent stuff where some people were impacted by the wrongdoings of this company, then you’re actually wrong. You see, this has been going over since February 2011 and continued till December 2017.
Like, between this time period, a lot of loans suddenly became overdue within just a month, and that was the case even though the borrowers had been keeping up with their payments very well. This sure was a big mistake because some borrowers ended up losing their homes through foreclosures, and that’s something that got a lot of people upset, and this is precisely what brought government officials’ attention to this company and its shady practices.
How Much Money Are We Talking?
Well, as we already told you, just to settle this Nationstar Mortgage Settlement Lawsuit, the company has finally announced that they’ll settle this case for $5.8 million, you know, try to make things right. Especially for those who lost their homes due to all this blunder.
And as far as the settlement money is concerned, you see, there are actually two groups of people who can get money from this settlement. Sure enough, the first group is of the people who had their homes foreclosed because things kinda went south with their loan payment transfers.
And? Oh, well, the second group is simply of the people who actually were locked out of their homes by mistake.
But now you must be wondering like when the settlement decision was made in 2020, then why is this lawsuit in the headlines in 2025? We’ve seen similar situations in other industries too, like the NASCAR 23XI Front Row Lawsuit Appeal, where a case originally filed in 2024 is gaining fresh attention in 2025 due to an ongoing appeal. Well, the reason is that now we have the final deadline to file for the share of settlement, which is March 3, 2025. So, if you’re someone who hasn’t applied to get your share of the settlement if you were the one who got impacted by the wrongdoings of Nationstar Mortgage, then this is the time deadline.
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