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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.
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56 thoughts onClass Action Lawsuit Accuses Nationstar of Racketeering
I would like to join the law suit against them I have only been a month behind they keep charging me inspector fee which is causing me to stay behind I should only owe the late payment how do you expect to catch up when they are charging something that should not be charged
I am a month behind. They keep sending someone out and charging me 15.00 fee. They even take pictures of my house and my neighbors see this!!!
I would like to know more about joining a class action suit against Nationstar
Nation star mortgage has been charging me inspection fees and they have been harassing my family with threats of foreclosure. They also charged me 500 for property taxes and I have documentation where they claim that is what they paid the state but in fact, my taxes were only around 436. and I have documentation from the tax authority to prove it. Nationstar mortgage company has refused to add my wife to the documentation although we have provided proof to them that my wife is a joint owner of the property and she was added to the loan documentation back in 2010. I have this document as well. Nationstar has repeatedly threatened to foreclose on my property if I fall behind by only 1-2 payments and they have harassed me with certified letters when I fall behind. I want to know if I fall into the category for the classaction law suit. Thanks so muchJason Plott
WE HAVE HAD NATIONSTAR FOR NEARLY 3 YEARS AND IT HAS BEEN A NIGHT MARE, PAYING OVER CAN COST AS MUCH AS 20.00 bucks IF PAYED OVER THE PHONE. HELP ME IF YOU CAN AND BY THE WAY MY MORRTAGE IS PAID UP TODATE, THANKS.
WE HAVE HAD NATIONSTAR FOR NEARLY 3 YEARS AND IT HAVE A NIGHT MARE. EXCESSIVE CHARGES AND INSPECTION THAT THEY NEVER HAD , AND CHARGING YOU FOR PAYING YOUR MORTAGE OVER THE PHOPE FOR AS MUCH AS 20.00 .this is terrible.
NationStar loss draft Department holding $41.968.62 of our personal money after receiving $104,000 from Natiowide Insurance company and returning $40,000 which cannot get us to the half way pint on repairs.
Nationstar added 85,000 to my mortgage taking it from 104,000 to 189,000!! Last year they over charged me 250$ per month for 11 months with no explanation of where the overage went. They are charging me more for escrow than my escrow actually costs. Now they have moved my payment from 750 to 1250 with no warning! One of the managers said he found 38 thousand in error but when he presented it to underwriting the refused to take it off. I was told to sign the agreement with the errors or they would foreclose on my home. This place is a night mare! CLASS ACTION NEEDED- BOA needs to be included as well!!
We live in Alabama and are suffering the exact same scenario. They have pushed us so far that we have a foreclosure sale date of 10-29-2015. Please help. Anyone out there with any advice please contact me at daxaprrobinson@live.com.Thank You
Just today I was hit with another property inspection fee, and the funny thing is my loan is current. Please send me info to join.
mi problema es similar a todos por unos pagos atrasados me psieron multas exesibas que realmente no se de que me estan cobrando bastante supuestamente son recarcos , cheque de vivienda total es demasiado y no se como resolver este problema