Mortgage-Related Unfair Practices
Pentagon Federal Credit Union Disclosures for Employee Mortgages TILA Class Action
Pentagon Federal Credit Union, also known as PenFed, granted to its employees the right to apply for a fixed-rate mortgage or refinancing loan at a discount from its regular rates for ordinary mortgage customers. But the complaint alleges that PenFed did not make the required disclosures to the employees who took out these mortgage loans, Read more
Nationstar Rejects Borrower for Covid-19 Modifications Class Action
This class action concerns homeowners with mortgages insured by the Federal Housing Administration (FHA) and serviced by Nationstar, who fell into default because of Covid-19. During the emergency, the FHA added Covid-19 Recovery Loss Mitigation Options to help borrowers under strain to keep their homes. But the complaint alleges that Nationstar improperly declared certain borrowers Read more
Celink and RMF Reverse Mortgage Extra Charges Class Action
Home equity conversion mortgages (HECMs) are what the complaint for this class action calls “the federally-insured version of so-called ‘reverse mortgage’ loans[.]” The complaint calls out the practices of Compu-Link Corporation, which does business as Celink, and Reverse Mortgage Funding, LLC (RMF), alleging that the companies have added fees, costs, charges, and penalties to HECM Read more
Nationstar Third Party Reconveyance Preparation Charges Class Action
This class action alleges that Nationstar Mortgage, LLC, which does business as Mr. Cooper, charged mortgage borrowers improper fees when their mortgages were released, assessing them a Third Party Reconveyance Preparation Fee or a Third Party Reconveyance/Release Preparation Fee, or something similar, even though neither the law nor their mortgage contracts permitted these fees. Read more
Shellpoint Mortgage Servicing Failure to Cancel PMI Class Action
NewRez, LLC services mortgages as Shellpoint Mortgage Servicing. The complaint for this class action alleges that the company has charged mortgage customers for private mortgage insurance (PMI) premiums, even after the PMI has terminated. The complaint claims Shellpoint has violated the Homeowners Protection Act (HPA) and Illinois state laws and breached its contracts with customers. Read more
RoundPoint Mortgage Pay-to-Pay Fee Settlement
This settlement resolves a class action alleging RoundPoint Mortgage charged borrowers pay-to-pay fees for making mortgage payments by telephone or IVR. The complaint claimed that RoundPoint’s charging of these fees violated the Fair Debt Collection Practices Act, state debt collection laws, and the terms of the borrowers’ loan agreements. Read more
Wells Fargo Reports Mortgages as Being in Forbearance California Class Action
Lenders, landlords, and employers all use credit reports to screen applicants, to determine whether they want to enter into relationships with them. It is therefore important that credit reports be accurate. The complaint for this class action alleges that Wells Fargo Bank, NA furnishes false information to credit reporting agencies, claiming that certain mortgage accounts Read more
JPMorgan Chase Six-State Interest on Escrow Settlement
JPMorgan Chase is settling a class action alleging it did not pay interest on escrow accounts where it was holding homeowners’ advance payments related to mortgages it was servicing, such as payments for property taxes and homeowner’s insurance. The states include Connecticut, Maryland, Minnesota, New York, Rhode Island, and Wisconsin. Read more
Gregory Funding Payoff Statement Fees Not Yet Incurred Class Action
This class action concerns the kinds of fees mortgage servicers are permitted to add to payoff statements, and how those fees may be figured. The complaint sues Gregory Funding, LLC for two fees added to its payoff statement, alleging that the wire fee should not have been added and that the reconveyance fee is excessive. Read more
Fay Servicing Payoff Inquiries Regulation X, RESPA Class Action
Fay Servicing, LLC is a mortgage servicer that at times also acts as a debt collector. This class action brings suit against Fay, alleging that it has a “pattern and practice of failing to provide homeowners with an accurate statement regarding the mortgages that it services.” Read more