The parties have reached a settlement in the case regarding the convenience fees. The settlement applies to borrowers who reside in California, Florida, or Illinois and who, during the relevant time period, made a payment to Nationstar on a residential mortgage loan over the phone or online that included a convenience fee charged by Nationstar for using the phone or internet.
Judge Morrison C. England, Jr. granted final approval of the Settlement on November 15, 2022.
In February 2016, Keller Rohrback L.L.P. filed a Class Action Complaint against Nationstar Mortgage LLC (“Nationstar”) and Solutionstar on behalf of Plaintiffs and all other similarly situated homeowners whose residential mortgage loans are serviced by Nationstar.
Plaintiffs filed their Third Amended Complaint on May 7, 2020. In the Complaint, Plaintiffs alleged that Nationstar collected “pay-to-pay” fees (or convenience fees) from borrowers in connection with certain payments on residential mortgage loans that were not properly disclosed and were otherwise improper under applicable law. Plaintiffs further alleged that Nationstar improperly charged borrowers for property inspection fees without determining whether the inspections were reasonable or necessary, and that certain property inspection fees were improperly “marked up” because Solutionstar earned a profit for acting as Nationstar’s vendor.
Plaintiffs dismissed their property inspection fee claims. We are also not in a position to bring additional claims against Nationstar at this point.
