WDFI closes investigation on mortgage company, orders redress

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In coordination with state and federal government partners, the Wisconsin Department of Financial Institutions has finalized its investigation of Nationstar Mortgage LLC, d/b/a Mr. Cooper, one of the nation’s largest mortgage servicers.

The company was found to have violated state and federal laws including impermissible mortgage origination fees and charges; missed tax payments from borrower escrow accounts; failure to terminate private mortgage insurance when conditions were met; mishandling of loan modifications and servicing transfers; and wrongful foreclosures. In Wisconsin, the order includes a redress of $864,864 for 632 consumers and civil penalties totaling $750,000 to be distributed evenly among participating states and jurisdictions. 

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