Servicing giant will have to face mortgage insurance lawsuit

by Ryan Smith25 Jul 2016
A federal judge has rejected a request by Nationstar Mortgage Holdings to throw out a lawsuit over mortgage insurance.

In a decision last week, U.S. District Judge Stewart Dalzell ruled that the lawsuit can proceed, according to a Reuters report. The suit claims that Nationstar improperly charged homeowners for mortgage insurance even after they met the requirements to terminate coverage.

This isn’t the first time Nationstar has been embroiled in controversy over mortgage insurance. Last year, the company, along with insurance giant Assurant, agreed to a $54 million settlement over allegations that they had charged homeowners inflated premiums for force-placed insurance, according to

The company has also been in the news for other legal actions accusing it of unfair practices. In June, an Army attorney filed suit against Nationstar, alleging the company violated the Servicemembers Relief Act by overcharging her on interest and fees, according to the Military Times.

And in July, the company was on the losing end of a Washington State Supreme Court case after changing the locks on a borrower’s home after she fell two payments behind on her mortgage. The court ruled that Nationstar violated state law, which prohibits lenders from taking possession of property until it has been foreclosed upon, according to the Poughkeepsie Journal.



Is TILA-RESPA a good or bad thing long term?