He says he flagged the escrow error again and again. By the time anyone answered, his home was gone
A new federal lawsuit accuses Mr. Cooper of escrow and loan-boarding failures that allegedly ended with a Louisiana borrower's home sold at a tax sale.
The lawsuit, filed on May 1, 2026 in the US District Court for the Eastern District of Louisiana, takes aim at Nationstar Mortgage LLC, doing business as Mr. Cooper, a nationwide mortgage servicer. It is the kind of case that should make any servicing or compliance team look twice, because it turns on the basics: getting the right parcel number into the system, paying property taxes on time, and answering a borrower when something goes wrong.
According to the filing, Tyler Michael Crochet, a first-time homebuyer in Ponchatoula, bought his home in 2022 and relied on Mr. Cooper to handle his property taxes through escrow. The filing says the servicer paid taxes for the 2023 and 2024 tax years - just to the wrong parcel. The original mortgage document, the lawsuit says, listed the correct assessment number all along.
The result, Crochet alleges, was that taxes on his actual home went unpaid, and the property was sold at a tax sale on June 25, 2025. He says he had to redeem the home himself on August 22, 2025, paying the 2024 taxes along with penalties, costs and fees out of pocket.
What happened next is where the case really lands for mortgage professionals. The filing describes a qualified written request emailed to Mr. Cooper on July 25, 2025, followed by emails on July 31, August 7, August 9, August 18 and August 20. Crochet says none of them got a response. A second request, sent through his attorney on August 25, 2025, was acknowledged on September 22 and answered on October 30 with what the servicer titled a "RESPA RESPONSE TO NOTICE OF ERROR."
That response, according to the filing, credited $2,812.70 back to his escrow account but did not cover the tax-sale penalties and costs, did not hand over the documents he had asked for, and chalked the problem up to the loan being "boarded with an incorrect parcel number," which the servicer attributed to incorrect legal information provided at the time of boarding. Crochet pushes back on that explanation, noting that his original mortgage document showed the correct number.
The lawsuit raises four claims under the Real Estate Settlement Procedures Act and Regulation X, covering timely tax disbursement from escrow, acknowledging and answering borrower inquiries, producing documents the servicer relied on, and what Crochet calls a broader pattern of escrow mismanagement at the company. He is asking for actual and statutory damages, attorney fees and costs, and additional penalties.
The allegations have not been tested in court, Mr. Cooper has not yet filed a response, and no court has ruled on the claims.
