What Lawsuits Have Been Filed Against Nationstar Mortgage?
As of March 2015, lawsuits filed against Nationstar Mortgage include breach of contract, unjust enrichment and fraud claims, according to Courthouse News Service and the West Virginia Record. Other lawsuits allege Fair Debt Collection Act and Fair Credit Reporting Act violations, states Justia. The plaintiffs are seeking money damages.
The homeowners who filed suit in Clark County, Nevada, claiming breach of contract and unjust enrichment, allege Nationstar paid Bank of America $7.1 billion to purchase servicing rights for an estimated 1.3 million home loans. The loans had an approximate balance due of $215 billion and more than $5 billion in additional receivables. Nationstar refused to abide by the loan modification agreement the plaintiffs reached with Bank of America before the Nationstar purchase, according to Courthouse News Service.
The Clark County plaintiffs seek class action status for their claims, as reported by Courthouse News Service. They also seek enforcement of the modification agreement and an award of attorneys’ fees.
A first-time home buyer who sued Nationstar in West Virginia claims it committed fraud and illegal debt collection practices, according to the West Virginia Record. The plaintiff alleges Nationstar never owned his home loan, but the company misled him with false representations, including that it had acquired the loan.