Mortgage-Related Unfair Practices
Freedom Mortgage Automatic Inspections Settlement
Freedom Mortgage Corporation has agreed to settle a class action alleging it improperly or unnecessarily charged borrowers fees for property inspections. The complaint alleged it charged the fees for property inspections when mortgages it serviced were delinquent or in default. Read more
Shellpoint Mortgage Inadequate Explanation of Payoff Items Class Action
Shellpoint Mortgage Services, officially called Newrez, LLC, is a mortgage servicer. This class action alleges that Shellpoint issues mortgage payoff that do not comply with federal laws, like the Fair Debt Collection Practices Act (FDCPA) and Florida state laws. The complaint claims that the mortgage payoff statements issued by the company to borrowers include a Read more
Caliber Home Loans Pay-to-Pay Fee Settlement
Caliber Home Loans, Inc. is settling three class actions alleging it charges borrowers pay-to-pay fees to make mortgage payments. The complaint alleged the company charged borrowers fees to make online, telephone, or IVR payments, and that this violates the Fair Debt Collection Practices Act (FDCPA) and breaches borrowers’ loan agreements. Read more
Gregory Funding Mortgages in CARES Act Forbearance Periods Class Action
During the Covid-19 pandemic, when so many people lost their incomes, or a significant part of them, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to provide a number of different kinds of relief. Among the different provisions, one section allows homeowners who are subject to economic hardship to ask for Read more
Bank of America Excessive Fees on Defaults Class Action
This class action brings suit against Bank of America, NA (BOA) and Integon National Insurance Company alleging they conspire “to maximize fees assessed on borrowers’ accounts when they are behind on their payments.” BOA, the complaint alleges, requires things like repeated and unnecessary property inspections and force-placed flood insurance. These are added to the amount Read more
Nationstar, Seterus Notice of Right to Appeal Loan Modification Denials Class Action
This class action brings suit against mortgage servicer Nationstar Mortgage, LLC, which does business as Mr. Cooper. Nationstar is the successor-in-interest to a servicer called Seterus, Inc., which merged with Nationstar. When Seterus rejected loss mitigation requests, the complaint alleges, Nationstar did not fulfill the servicer’s obligations under the Real Estate Settlement Procedures Act (RESPA) Read more
Freedom Mortgage Convenience Payments Settlement
Freedom Mortgage Corporation is settling class actions filed against it in Texas and California that claim it charged borrowers “convenience fees” for making mortgage payments online or over the phone, including through interactive voice response systems. The complaint alleged that the fees violated state debt collection laws and breached the terms of mortgage agreements. Read more
PHH Mortgage of Pay-to-Pay Fees West Virginia Class Action
This class action bring suit against PHH Mortgage Corporation from improperly profiting from homeowners whose mortgages it services by charging illegal processing fees, or “pay-to-pay” fees, for mortgage payments made by telephone or online. The complaint alleges this violates the West Virginia Consumer Credit and Protection Act (CCPA), the state’s debt collection law, and the Read more
LoanCare Refusal of Requests and Erroneous Credit Reporting Class Action
When a mortgage loan is passed from one servicer to another, the transfer process may result in errors. In this case, for all of the plaintiffs, the new servicer was LoanCare, LLC. The complaint for this class action alleges that LoanCare erroneously considers them all to be in arrears, has refused to provide them with Read more
US Bank Improper Fees for Payoff Statement Massachusetts Class Action
Mortgages and their servicing are thoroughly regulated, including in the state of Massachusetts. The complaint for this class action alleges that US Bank, NA charges impermissible fees, such as a Payoff Statement Fee and a Discharge Recording Fee, which are included in the Total Amount Due when borrowers request a Payoff Statement for their mortgages. Read more
