Mortgage-Related Unfair Practices
Seterus Final Letter Action Settlement
Seterus, Inc. and Nationstar Mortgage, LLC will be paying $7 million to settle a class action alleging that they unlawfully threatened homeowners with foreclosure in a Notice of Default letter or Final Letter. The complaint alleged violation of the (1) the Fair Debt Collection Practices Act (FDCPA), the Michigan Regulation of the Collection Practices Act, Read more
Planet Home Lending Unnecessary Home Inspections Class Action
When are mortgage lenders required or permitted to make a visual inspection of the property if the mortgage is in default? If the mortgage is insured by the Federal Housing Administration (FHA), the Department of Housing and Urban Development (HUD) has a regulation that governs that situation. The complaint for this class action alleges that Read more
Bank of America Rejects RFIs and Electronic Signatures Class Action
Homes tend to be the largest purchases people make in their lives, so difficulties with mortgages are significant. The Real Estate Settlement Procedures Act (RESPA) tries, among other things, to ensure that borrowers can receive all the information they need promptly. The complaint for this class action alleges Bank of America, NA (BANA), does not Read more
Kelco FCU Errors in Mortgage Accounts with Balloon Payments Class Action
This complicated case involves both individual and class concerns about mortgage payments in Maryland. The complaint alleges that Kelco Federal Credit Union misapplied payments, misreported balloon amounts, and failed to correct errors, creating ever-larger problems for the homeowners, who finally brought this case against Kelco. Read more
Nationstar Foreclosures Violate Homeowner Law California Class Action
California passed a Homeowner Bill of Rights (HOBOR) after its foreclosure crisis in 2007, “to prohibit the abusive and deceptive loan servicing misconduct” and to give homeowners a chance to retain their homes. The complaint for this class action alleges that Nationstar Mortgage, LLC, doing business as Mr. Cooper, does not follow the law and Read more
Wells Fargo Improper Mortgage Insurance Premiums Class Action
Wells Fargo is a very large mortgage lender. Some of its mortgages are insured by the Federal Housing Administration (FHA). The complaint for this class action names Wells Fargo, NA and Wells Fargo Home Mortgage as defendants and alleges that Wells Fargo continues charging borrowers for FHA premiums even after they are no longer due. Read more
MegaStar Mortgage Loans Pay-to-Pay Fees California Class Action
MegaStar Financial Corp. services mortgages. But the complaint for this class action alleges that they “impermissibly profit” off homeowners “by charging and collecting illegal payment processing fees when borrowers make their monthly mortgage payments by telephone or online…” These are known as pay-to-pay fees, and the complaint claims they violate debt collection laws and breaches Read more
LoanCare Improper Escrow of Water Quality Fees Class Action
LoanCare, LLC is a mortgage servicing company. Like many mortgage servicers, it collects additional funds for things like taxes on the mortgaged property, which it holds in an escrow account until payment comes due. But the complaint for this class action alleges that it should not be collecting water quality fees in this same manner. Read more
Wells Fargo Falsely Reporting Mortgages as in Forbearance California Class Action
The complaint for this class action alleges that Wells Fargo Bank, NA improperly claimed to credit reporting agencies that certain of its mortgage accounts were in deferment or forbearance, and that no payments have been made on these accounts recently, when in reality they have been made. Read more
Wells Fargo Mortgage Forbearance Enrollment Without Consent Class Action
In an earlier scandal, Wells Fargo was caught opening credit card and other accounts for clients without their knowledge or permission. The complaint for this class action alleges that Wells Fargo & Company and Wells Fargo Bank, NA have now enrolled some mortgage customers in Covid-19-related forbearance programs without their knowledge or permission. Read more