Arizona gets $1.4 million in nationwide settlement with a mortgage servicer

PHOENIX – Arizona will receive more than $1.4 million as part of a nationwide settlement with a mortgage servicer that was accused of violating consumer protection laws, the state attorney general’s office said this week.

Nationstar, which does business as Mr. Cooper, will pay $86.3 million in restitution in the case, which was brought by 50 attorneys general and other federal and state agencies.

The judgement, which was filed Monday in the U.S. District Court for the District of Columbia, affects 1,457 loans in Arizona for a total of $1,481,490.57, according to an AG’s office press release.

The release said thousands of borrowers nationwide had issues after their loans were transferred to Nationstar, and it may have contributed to foreclosures for more than 200 Arizonans.

More than 200 Arizonans can expect payments of at least $840 from the settlement, and a similar number will get at least $250.

Eligible borrowers will be mailed claim forms in 2021, the release said.

The settlement covers alleged misconduct by Nationstar from 2011 to 2017, with
$79.2 million in relief affecting 55,814 loans in all.

As part of the settlement, Nationstar will have to follow loan servicing standards that are stricter than industry standards for the next three years.

The company will have to conduct audits and provide the results to a committee to ensure compliance.

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