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
Nationstar is a debt collector. Hey are using robo signed documents to foreclose on me. When they couldn’t sell the house, they offered a horrible modification. My husband justv wants to take the deal. What a mess from countrywide to bank of America to Nationstar to Mr Cooper
My husband and I was forced into chapter 13 before preclosure paid it off in a year was suppose to be a 5year deal not knowing that I was suppose to submit payments to three different companies mortgage was suppose to get most of this but they got got paid there share and then some,inspection fees,all kinds of other fees, principal and interest is all wrong they changed companies in the middle of this year and bankruptcy got even worse because of this there so much more to this story it would take hours to think all of this throug. They are predatory thieves not lenders not servicers because they certainly do not do that.
Nationstar, Selene, DBA Christiana trust fund, bank of America how can they even be called that Bank of America give me a break they should be called Bank of Predatory Lending. I’m so fed up with all of this hopefully this loan modification will hold them up. But I seriously doubt please, please someone contact me about this dreadful thing happening to our family.
They did this to me and I lost my home due to exsessive charges in the modifications..please contact me on a lawsuit cant get my home back now they sold it . Mgapski1975@gmail.com
Someone please contact me about a class action lawsuit open regarding Nationstar Mortgage. I have this going on regarding excessive property inspections being charged over $60 a month, but Nationstar can’t produce documents… I have also been dealing with them losing my monthly payments! I pay every month but have been “foreclosed” on 3 different times since 2010. They have added more than $19,000 in “expenses” to my loan! I HATE THIS COMPANY!! Help please they are killing me with all this stress. NOW I owe for the last four months of mortgage even though I have the bank statements to prove I paid them! They can’t locate the money!! Brandicash83@yahoo.com
is it too late to join this particular lawsuit as i want to join??? If not i will begin another one, is anyone interested??
Dawn; I am attempting to find an attorney to represent me against Nationstar. They hit me with every crooked scheme they could think of. Force placed insurance when I already had my house insured. The policy they forced me to pay for for 7 years (even after I sent them proof that I had insurance) cost $53.00 a month, they were charging me $97.60 per month. Thats $44.60 per month commission for providing me with insurance. After I paid those crooks off I demanded a complete history of the loan. They played a bunch of games with me, the first time they told me they would have to email it to me…they sent it in a format I could not access. After refusing to mail me a paper 4 or 5 times I finally demanded they mail me the paper copy or I would contact an attorney. I learned that on one day I was charged 53 late fees, 34 on another day,27 another day, 7 on another day,ranging in amounts from $5.02 to $14.65. I had that loan for exactly 175 months I was charged 236 monthly late fees in dollar amounts from $5.02 to $46.22. They charged me random amounts for property inspections, huge amounts for legal fees, They have a whole section for Misc. PMTS. & SRV. FEES. These crooks stole thousands of dollars from me… I want my money!!! ronoverlie@aol.com
Did you find an attorney yet. I’m in they are the biggest frauds ever.
I would be interested ,please contact me at Bcatfish227@charter.net.
This company offered me a loan modification, that was instituted through the gov’t. They then claimed that they missed the filing deadline and the modification was no longer valid. They proceeded to try to foreclose on my house. I had to hire a lawyer to restructure the loan. The restructured loan ended up being for $50,000 more than what I owed on the house. I work in gov’t with a clearance, so I had no other option. This company is crooked as the day is long. I would love to join the class action.
This is so like my story. Have you been able to find a class action that we can join?
This is what happened to me! I’m in Missouri. Anyone have a lawyer for this, yet?
Yup same here sign me up lost my home to them
Same situation only in NYS. I want to help my kids out of this. Please send info.
I went through the same miserable nightmare with these guys. After 2 years of fighting with them I finally got them off my back, but now Im starting to question they way in which they are charging me interest on my loan. I dont trust anything about these guys.
I would like information of what to do also. We have been charged the inspection fees also. They have also held our payment, without applying them to our loan. Then took out other fees from the payments we paid. Now claiming we haven’t made a payment all year. They are charging us late fees several times a month. Don’t really understand all of this, but it doesn’t seem right.
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? Nationstar is involved in lawsuits called Fair Debt Collection Practices Act, check out Duff v Nationstar, it is illegal.
Dear Josephine, legal aid will not help anyone. They are not going to take on a multi-billion dollar fraudclosure company. I have submitted complaints against this company to every major government organization and NOTHING has been done to stop them. The CFPB hides all complaints from the public that have been submitted against Nationstar Mortgage. If you do not believe me, go look. All you will see in the complaint database is that a complaint was filed but no data regarding the complaint or the response or the dispute is published. It is obvious that someone is getting paid a lot of money to hide the truth. Nationstars lawyers have been in previous law suits for fraud and for doctoring documents so they cant fraudulently foreclose on homes. People need to step up and start submitting as many complaints as possible to the FTC, OCC, CFPB, Officer of the inspector general. attorney general and even the FBI. The FBI has the power to go in and audit county records against these crooks which is what they did in other counties and that is how it was proven that robo signers were hired to falsify documents. The only way to stop this is to fight back and report them and question everything. Submit a QWR under the respa act. Research your rights and hire a lawyer. This company needs to be stopped because they have become too powerful.
ESTOY CANSADO DE QUE NATIONSTAR MOEGAGE SIGA ACOSANDOME . ESTOY ESPERANDO QUE ME LLAMÉ ALGUIEN DE LOS ABOGADOS QUE LITIJIAN ENCONTRA DE NATIONSTAR MOEGAGE. SOLICITÓ QUE POR FAVOR ME LLAMEN URGENTEEE. POR FAVOR. 787-615-0523 / GRACIAS L.E.