Earlier this year, the Consumer Financial Protection Bureau hit Nationstar Mortgage, the nonbank also known as Mr. Cooper, with a $1.75 million fine for the company’s alleged failure to comply with the reporting requirements of the Home Mortgage Disclosure Act.
But it looks like that wasn’t the only regulatory issue the company is dealing with this year.
Nationstar disclosed this week that the company is facing settlements and fines from two of the most powerful state financial regulators – New York and California.
Nationstar revealed the looming settlements in its 10-K filing with the Securities and Exchange Commission, filed in conjunction with its third quarter earnings release.
According to the filing, Nationstar is “currently in negotiations” with both the California Department of Business Oversight and the New York Department of Financial Services to settle a number of examinations, one of which stretches back to 2012.
Nationstar did not provide much in the way of detail about the pending settlements, although the section of the 10-K where the settlement disclosures appeared made reference to “certain legacy regulatory matters involving regulatory examination findings for alleged violations of certain laws related to our business practices.”
When contacted by HousingWire, a spokesperson for Nationstar said the company will not be commenting beyond what is in the SEC filing.
Here’s what’s in the SEC filing:
Nationstar is currently in negotiations with the California Department of Business Oversight to resolve two examinations, one of which dates to 2012. The Company is also in negotiations with the New York Department of Financial Services regarding two examinations.
HousingWire also attempted to contact the NYDFS and the CDBO for more information on the settlements in question. A spokesperson for the NYDFS said that there is no new information to provide and said the agency cannot comment on pending regulatory matters.
A spokesperson for the CDBO said that the agency cannot comment on (even to confirm or deny) ongoing investigations or related negotiations.
Nationstar said in its SEC fling that both situations will result in the payment of civil money penalties and “other remedial measures,” but the company did not provide details on how much those penalties may be.
The company did state that “management does not believe that resolution of either of these matters would have a material effect on the company’s results of operations or financial position.”
[Update: This is article is updated with a "no comment" from the CDBO.]
