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AG settles with largest non-bank mortgage lender over foreclosures

BOSTON —

Valorie and Gerry Roche intended their East Weymouth home to be their sanctuary, but they never imagined the battle they’d face to keep it.

“Anger. Crying. Frustration,” said Valorie Roche. “Almost giving up.”

The Roches say the problems started when they had some financial troubles and applied for a loan modification with their mortgage company, Nationstar.

They say despite making payments, Nationstar told them they defaulted and sent them a foreclosure notice. They had to file for bankruptcy to stop the auction of their home.

“We had proof of payments, we had cancelled checks,” said Valorie Roche.

Frustrated that they couldn’t get through to the mortgage company, they turned to the Massachusetts Attorney General’s Office and found out they weren’t alone.

“Here Nationstar broke the law,” Attorney General Maura Healey told 5 Investigates reporter Karen Anderson.

Healey said in an interview that the Roches and other Nationstar customers with sub-prime loans should have been given under a 2012 Massachusetts law a chance to modify their mortgages before foreclosure.

“We received hundreds of calls from people who said they tried to get through to Nationstar and they weren’t able to get through, and so that’s way we did the investigation and took action,” Healey said.

Under a settlement filed today in Suffolk Superior Court,

The AG says Nationstar will pay $500,000 in restitution for its customers who lost their homes in foreclosure, and millions to modify and reduce loans for others customers facing foreclosure.

In the settlement, Nationstar says it neither admits nor denies the allegations.

In a statement to 5 Investigates, Nationstar CEO Jay Bray said: “We are committed to keeping the dream of homeownership alive, and we apologize to our customers in Massachusetts.

The company, which has re-branded its mortgage servicing and originations operations as Mr. Cooper, has also invested “to bolster our team and improve our processes,” Bray said.

The Roches are happy they were able to get relief from foreclosure proceedings.

Healey congratulated them for fighting.

“If you hadn’t come forward and participated in this way we wouldn’t have been able to help as many people as we did,” she told them.

The Roches hope their determination will inspire others.

“If you know you’re right, you don’t stop the fight,” said Valorie Roche.

Article source: http://www.wcvb.com/article/ag-settles-with-largest-non-bank-mortgage-lender-over-foreclosures/15917630

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