Mr. Cooper Mortgage Servicing Settlement: Claim up to $350

If you had your residential mortgage servicing rights transferred from Pacific Union Financial, LLC (PUF) to Nationstar Mortgage LLC (Nationstar), dba Mr. Cooper, you may be eligible to claim an award from a class action settlement.

Nationstar Mortgage LLC has agreed to pay $1,000,000 to settle a class action lawsuit for alleged violations of the Electronic Funds Transfer Act (EFTA), Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA), and Chapter 224 of Wisconsin Statutes.

Who Can Claim an Award?

To qualify, you must have received a "Notice of Transfer of Servicing Rights" letter from PUF and Nationstar in substantially the same form as Exhibits C and E to the Complaint.

Additionally, there is a subclass for those who had executed an electronic funds transfer authorization with their prior servicer and from whom PUF and Nationstar collected overlapping payments.

• All natural persons in the United States whose residential mortgage loan servicing rights were transferred from PUF to Nationstar.
• Individuals who received a "Notice of Transfer of Servicing Rights" letter from PUF and Nationstar.
• Subclass members who had executed an electronic funds transfer authorization and experienced overlapping payments.

What Awards Can Class Members Claim?

The proposed settlement includes a $1,000,000 Common Fund to be distributed among class members:

• Approximately $200,000 will be used for notice and administration costs.
• Approximately $25,000 will compensate the plaintiffs for their individual actual and statutory damages and a reasonable incentive award.
• Class Counsel will seek up to $350,000 for attorneys’ fees and litigation expenses.
• Approximately $425,000 will be distributed among class members, with $100,000 allocated to the subclass, providing up to $350 per claimant. The remaining funds will be distributed to the class on a pro rata basis.

If the number of claims exceeds the available funds, the awards will be prorated. For example, if there are 1,000 valid claims from the subclass, each claimant would receive $100 ($100,000 / 1,000). If there are 10,000 valid claims from the class, each claimant would receive $32.50 ($325,000 / 10,000).

Is Proof Required to Claim the Reward?

Proof is not applicable to the Nationstar Settlement. Claimants do not need to proactively provide proof they are class members as the Settlement Administrator already has the necessary information.

How to Claim an Award

To claim your award, you must complete and return the claim form by September 16, 2024. You can file a claim online or by mail.

To file by mail, send your completed claim form to:

Ellis v. Nationstar

c/o Settlement Administrator

PO Box 23489

Jacksonville, FL 32241-3489

How do I Get Paid?

Once your claim is approved, you will receive your payment via check sent to the address you provided. Ensure your address is up-to-date to avoid any delays.

$1,000,000 Settlement Fund

The settlement fund of $1,000,000 will cover the following:

• Notice and administration costs: $200,000
• Compensation for plaintiffs: $25,000
• Attorneys’ fees and litigation expenses: Up to $350,000
• Distribution to class members: Approximately $425,000

Important Dates

• Deadline to File a Claim: September 16, 2024
• Final Approval Hearing: October 29, 2024

When is the Nationstar Settlement Payout Date?

The awards will be paid after the final approval hearing, which is scheduled for October 29, 2024.

Why is There a Class Action Settlement?

This settlement resolves allegations that Nationstar and PUF did not provide adequate notices of transfer of servicing and collected overlapping autodraft payments from certain borrowers. The plaintiffs sought to recover damages for these alleged violations.

What Happens Next?

After the October 29, 2024 final approval hearing, the court will determine if the proposed settlement is fair, reasonable, and adequate. If approved, the settlement will be binding, and Nationstar will be released from any further liability related to these claims.