Mr. Cooper and Lakeview Loan Servicing convenience fee class action settlement

A proposed settlement has been reached in a class action lawsuit that claimed Nationstar Mortgage, doing business as Mr. Cooper and Lakeview Loan Servicing LLC, violated the law by collecting an unauthorized convenience fee for mortgage payments made over the phone.

The settlement class comprises all individuals in Maryland who paid a “convenience fee” collected in whole or in part by Mr. Cooper or Lakeview to make a payment on a residential mortgage debt from April 15, 2019, to the present. 

The term “convenience fee” was not specifically enumerated in the original agreement between class members and Mr. Cooper. The plaintiff alleges that this action violates the Maryland Consumer Debt Collection Act (MCDCA) and the Maryland Consumer Protection Act (MCPA). After the lawsuit was filed, the Maryland Commissioner of Financial Regulation affirmed this sentiment, stating in a notice that these fees would be deemed illegal if they were not “specifically authorized by the applicable loan documents” before being charged.

Mr. Cooper Group is an umbrella corporation that holds companies like Nationstar Mortgages LLC, one of the largest mortgage servicers in the country. As of September, Mr. Cooper had more than 4.3 million customers throughout the United States.

Lakeview Loan Servicing LLC assists more than 1.4 million customers annually. It is the fourth-largest mortgage loan servicer in the country. 

Between April 15, 2019, and April 15, 2022, Mr. Cooper collected 65,894 instances of convenience fees, totaling $982,907.22. The company has denied all wrongdoing but agreed to a settlement to resolve the class action lawsuit. 

Customers may have already had certain amounts refunded to them. If the proposed settlement is approved, Mr. Cooper will donate $37,200 to Habitat for Humanity and the Housing Initiative Partnership; 50% will go to each charity organization. The company will also pay the class counsel’s legal fees of $114,240.

Class members will not receive any benefits for taking part in the settlement. 

The deadline for exclusion and objection is Feb. 14, 2024.

A final approval hearing in the Mr. Cooper and Lakeview Loan Servicing class action lawsuit settlement will take place March 15, 2024.

Who’s Eligible

All individuals in Maryland who paid a “convenience fee” collected in whole or in part by Mr. Cooper or Lakeview to make a payment on a residential mortgage debt from April 15, 2019, to the present. 

Potential Award

N/A

Proof of Purchase

N/A

Address Change Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion Deadline

02/14/2024

Case Name

Tonda Baxter v. Lakeview Loan Servicing LLC, et al., Case No. C-02-CV-22-000654, in the Circuit Court of Pulaski County, Arkansas

Final Hearing

03/15/24

Settlement Website

BaxterConvenienceFeeSettlement.com

Claims Administrator

N/A

Class Counsel

Phillip R Robinson
CONSUMER LAW CENTER LLC

David Hoskins
LAW OFFICES OF E DAVID HOSKINS LLC

Defense Counsel

N/A