Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Last week, Nationstar Mortgage LLC was hit with a class action lawsuit accusing the loan company of violating federal Racketeer Influenced Corrupt Organizations (RICO) and Florida law over claims that the company automatically charged homeowners through a subsidiary for home inspections that were excessive and unreasonable and then received kickbacks.
Lead plaintiffs, four Florida homeowners, alleged in their RICO class action lawsuit that Nationstar and its subsidiary, Solutionstar, unfairly required multiple home and property inspections after they became delinquent on their mortgage payments that were serviced by Nationstar. The plaintiffs allege that the inspections were conducted by Solutionstar and they were charged additional late payment fees and required to refinance and make expensive modifications.
“Because Nationstar’s parent companies profit from property inspections through their ownership of Solutionstar, Nationstar is incentivized to order property inspections even where they are excessive in frequency and price, unnecessary, inappropriate or otherwise unlawful,” the plaintiffs argue in their RICO class action lawsuit.
The plaintiffs further allege that Nationstar has an unfair interest in hitting delinquent mortgage holders with excessive fees because they generate revenue from those fees. According to the class action lawsuit, Nationstar has an unfair incentive to keep mortgage holders in default because it collects more in profit if it does so.
“Instead of being based on reasonable parameters — such as whether borrowers’ mortgage contracts or applicable law permitted and/or the lender’s guidelines required the inspections — Nationstar’s computer servicing system was programmed to order the inspections and impose as many charges and fees as possible,” claim the plaintiffs in the class action lawsuit. “Nationstar routinely engaged in this abusive conduct even after it had been notified by the borrowers’ attorney that the property was inhabited and in good condition.”
The plaintiffs further allege that when Solutionstar became the service company for delinquent property inspections, Nationstar increased the fees it charged delinquent borrowers for property inspections around 2012 from $9.15 to $15. Additionally, according to the class action lawsuit, Solutionstar began to assess multiple fees within a single month and even within the same day.
The plaintiffs argue these charges amount to violations of federal and state RICO laws engaging in a racketeering scheme to increase its own profits at the expense of delinquent borrowers and also by using mail fraud and wire fraud to conduct its communications with customers. The class action lawsuit alleges that in March, the New York Department of Financial Services sent the CEO of Nationstar a letter notifying the company of an excessive number of complaints failed against it for these practices.
The plaintiffs contend that a class action lawsuit is appropriate because of a number of other lawsuits filed against the companies in Florida with similar accusations.
Lead plaintiffs, Trevor Hill, Staci Hill, Qamarun M. Shaikh and Mujahiddin Shaikh, are represented by Yechezkel Rodal of Loan Lawyers LLC in Florida and Patrick F. Madden of Berger & Montague PC.
The Nationstar RICO Class Action Lawsuit is Hill, et al v. Nationstar Mortgage LLC, et al., Case No. 0:15-cv-60106, in the U.S. District Court for the Southern District of Florida.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
56 thoughts onClass Action Lawsuit Accuses Nationstar of Racketeering
I am TN..I had over $1000 in property inspections in 2014 and so far $987 in 2015 Help!!!!…I try to catch up but they keep charging me…
Please send me any info as well!!!!
This place is been trying to take my house for four years any lawsuit that you file against this place I want in on
I would like to join class action suit. My family has been having the same problems. A nationstar employee told us face to face that we couldn’t get help unless the loan was 2 months past due and to stop paying it and come back to see her than. We have been going through this for a year and gotten denied and fnma is the investor. Please help
I have very similar issues as well. I would like to participate.
My complaints are much the same as the above. B of A passed on my account to Nationstar in 2013. We have had one problem after another dealing with them as a customer. Maybe B of A should be included in a lawsuit How can I join the class action suit ? Send info.
we been having alot of problems with nationstar including the property inspections fees wrongful foreclosure can i join in on the class action
Please contact Legal aid, because they have helped a lot of people wrongfully evicted and foreclosed. I read this in an article. I don’t have a clue how Nationstar gets away with all the stuff that they do to its consumers. With so many complaints that are confirmed, why this company isn’t shut down is beyond my understanding. Nationstar has multiple lawsuit: Fair Debt Collection Practice lawsuits, Duff v. Nationstar and Wright vs. Nationstar. What going on?
We owned our home free and clear.Went into realestate,lost house during house bubblebut borrowed money to pay mortgages,Leamans folded Auroura bought paper,then bought it harassed us tried to forclose several times.then had Judge David Wynn Miller file a Federal Lawsuit against Nationstar the judge,lawyers,sherrif,deputies,for hiring the Sheriff and deputies to come on our property with a swat team arrested me in my own house and threw me in jail with trumped up charges say I was trespassing. This corrupt and unlawful outfit is going to get taken down as we hold the title
I have heard about David and was wondering about his program. My mortgage is with Nationstar as well. I would like to hear more about your results and following events. Please feel to email me privately if you are willing to share your experience with me. I am another homeowner with Nationstar currently. Thanks and good luck.
We have the exact same problem with Nationstar also. This has been ongoing for many months. How can I get more info?
I want info also. My note says I have till the 15th of the month grace period. When I call Nationstar and tell them it has to be paid by the 15th they insist I have a grace period of the 17th. I say are you sure because I don’t want fees. Are you SURE yes we are sure. Well low and behold while listening to their recording yesterday I hear about 500 in fees? I asked the rep what those fees were. She told me I had paid many times on the 17th. I said your reps numerous ones had told me I had till the 17th. She said she would forgive ONE of the fees. I said what about what your reps told me? She said we will give them some extra training!!!!Are you kidding me. I told her since they always insist that their calls are recorded to just listen to their recording. She can’t do that. Then they send out their person to take pics prob their solution star. Therefore getting kickbacks violating RICO laws. I believe this was done intentionaly. My neighbors have seen them out taking pics. I will be contacting the De banking commissioner and AG office TODAY!!!
I have the same complaints as above and more with document fraud, can I join your class action?