Nationstar Class Action
Nationstar Mortgage L.L.C. (rebranded as Mr. Cooper in August 2017)
Solutionstar L.L.C. (rebranded as Xome in December 2015)
Contreras, et al. v. Nationstar Mortgage L.L.C., et al.
United States District Court for the Eastern District of California Sacramento Division
Case No. 16-cv-00302
In February 2016, Keller Rohrback L.L.P. and Co-Counsel filed a Class Action Complaint against Nationstar and its wholly owned subsidiary, Solutionstar, on behalf of Plaintiffs and all other similarly situated mortgagors whose residential mortgage loans are serviced by Nationstar. Plaintiffs filed their Second Amended Complaint on September 24, 2018, and after a second round of motion to dismiss briefing the Court again largely upheld Plaintiffs’ claims on February 19, 2019, including the RICO claims.
The Third Amended Complaint continues to pursue claims related to two of Defendants’ practices.
First, Plaintiffs allege that Nationstar (now known as Mr. Cooper) and its subsidiary Solutionstar, use an automated default servicing platform to illegally, unfairly, and fraudulently charge defaulted borrowers for multiple and repetitive “property inspections” that are not required by lenders, not permitted by lender guidelines, and in many cases not allowed under state and federal regulations and guidelines.
Second, Plaintiffs allege that Nationstar implements a “pay-to-pay” scheme of assessing a fee when homeowners make payments online or by phone. This additional fee increases the monthly amount due which in turn can result in additional late fees, making it increasingly more difficult to avoid further default-related servicing fees.
The case has entered the discovery phase of the litigation. Discovery consists of the many activities to further the litigation and the assembly of evidence related to the issues and claims that are being pursued.
We urge you to visit this website periodically as it will be updated as the litigation progresses.
Plaintiffs’ Motion for Class Certification is due August 4, 2020.
Third Amended Class Action Complaint – 05/07/2020