Kathy Jennings, the Attorney-General, announced Monday that Delaware has joined with 51 attorneys generals and federal and state agencies to finalize an $86.3 million settlement with Nationstar Mortgage, the fourth-largest mortgage servicer in the country.
The consent judgment resolves allegations that Nationstar, violated consumer protection laws while providing its mortgage loans. Thousands of borrowers had issues when their loans after they were transferred to Nationstar, which, in some circumstances, even lead to foreclosure.
Attorney General Jennings said that “We are holding Nationstar accountable for harming homeowners by improperly servicing their mortgage loans.” Moreover, “The new servicing standards in this settlement will help ensure Nationstar does not repeat this conduct.”
The state attorneys negotiated the case with the mortgage regulators and the federal Consumer Financial Protection Bureau. Each side filed its own settlement documents.