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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 have been experiencing the with Nationstar, I have been see the inspection for more 4 years. Also gave me a hard time for my HAMP application, I would like to know and join this class action against Nationstar Mortgage.
Nationstar home mortgage had originally given permission to a third party vendor to enter into my home and winterize piping in my house even though I had explained to the third party vendor to call me with a time and day for this situation. They changed the lock on the house and placed a lock box on the front door. The house is still in my name!!!!! Also, excessive fees continue to accrue even though I have attempted to work with them re:mortgage. the house is under water and they had me at 6.43% and was aware of the financial difficulties I was having in my family. In addition, I get approved and then receive another application for a modification and charged at the same time. Each modification cost me more monies. Paperwork seems to be MIA and repetitive telephone calls from representatives that at times can be rude. I was told by one representative if I could not afford the house get out and learn how to pay my bills. I mentioned it to the representative after him, but I feel as if it was completely ignored. My entire ordeal with Nationstar has been a terror. All the monies I had put into the house is at the end of the loan and they continue to hit me with crazy fees. I would very much like to join this lawsuit.
QUE A PASADO CON NATIOSTRAR MOEGAGE EN QUE ESTATUS ESTÁ ESO SOY UNO MÁS QUE TODAVÍA ESTÁN LLAMANDO PRECIONANDO AVISANDO Y ESTOY CANSADO SON UNOS ABUSADORES Y LADRONES SOY DE PUERTO RICO MI NOMBRES ES LUIS RUIZ TENGO UN PRÉSTAMO CON ELLOS Y QUIERO SABER QUE A PASADO ME ESTÁN ACOSANDO CASI DIARIAMENTE. AUXILIO YA ENTREGUE LA INFORMACIÓN A TOP CLAS ACCTION QUE MÁS DEBO ESPERAR MI NO. DEL E S 787-615-0523. AUXILIO POR FAVOR..
Nationstar Mortgage, LLC engages in fraudulent activity and has been charging us with corporate advances and other fees since 2012. This company refuses to tell us who the lender is and Nationstar Mortgage, LLC is merely the servicer. They are currently trying to foreclose on my home and my loan is FHA. I had one customer service representative tell me that the lender was FHA, which is a joke because FHA is a type of loan, not a lender. We have been charged with $20 inspection fees, $ 15 inspection fees and $12.50 inspection fees since 2012. This company even charged inspection fees after being informed repeatedly that we are living in the home and they continued to charge inspection fees while we were still making payments. Nationstar Mortgage, LLC actually bought the servicing rights to mortgages that were originally serviced by Aurora Loan Services and the lender was Aurora Bank FSB. Well, Aurora Bank FSB went out of business back in 2013, so on my particular mortgage, there is no lender. Nationstar Mortgage, LLC refused to work with me BEFORE the lis pendens was filed against my property. I tried to reinstate the loan BEFORE anything was filed in the county records. They refused to work with me and threatened me with attorney and court costs. This company also demanded 4 payments be made when I was only behind on one payment. I have 1098 IRS FORM for mortgage interest paid to the lender in 2012, this is indisputable evidence that the lender was Aurora Bank FSB and this lender no longer exists. I have not been able to get help even though Aurora Loan Services had robo signers and forged promissory note.
I would like to join in the law suit
I have over 7000.00 dollars in fees. I owe less than 40,000 on my house. just got a modification with them they done it for 40 years meaning I will pay over 200,000 for my home Nationstar needs to be stopped. THEY SENT PEOPLE TO TAKE PICTURES OF MY HOUSE AND CHARGED ME FOR IT MONTHLY.
I only owe 19,000 on my home. We have been paying on this property for 22 years. Now, they claim I owe them over $8,000 and suddenly want me to do a loan modification now that I know there is no lender on my mortgage. This company needs to be stopped. They have charged me with $4,000 worth of corporate advances and have continued to charge inspection fees even when payments were being made.
I would like to know how to join the class action. I am having issues with Nation Star Mortgage. My Mortgage payment as of April is going to raise from $1348.00 to $2400.00. They don’t even care and not even want to help. Also I had a water damage at my house and when insurance send the check to them to sing of and send it back to me, they hold it for 2 weeks.
im in californai. not only did i have same problem. i never received foreclosure letter and they blocked me from making payment via western union unless i payed a certain amount. then i paid a 10000 lump sum to get me from behind in oct 17. i got a bill in november. i called them and they said dont worry about that one that it was included in 10000. but it was never documented. they have had me behind for that month and wont change it. they said they were foreclosing gave me payoff verbally. never sent me paperwork. but i paid it because i didnt want to looose grandpas house. i also got several inspetions. they said they do that for every month you are late. can i join.
Excessive inspection fees…Nationstar foreclosed during modification process, rescinded the foreclosure, but wont put my house back in my name until I sign off to not hold them legally liable for the whole ordeal, and they are still charging me $1700 in attorneys fees for THEIR mistake!!!!!! Please include me in a class action lawsuit.
We live in California and have all the same complaints as above about Nationstar mortgage. We have over 1000.00 in property inspections added to our bill. We need a class action lawsuit against these thieves ASAP