Nationstar Lawsuit Investigation Challenges Private Mortgage Insurance
Audet & Partners, LLP is investigating claims by customers of Nationstar Mortgage that the company violated federal law by failing to remove Private Mortgage Insurance (PMI) once borrowers’ loan to value ratio dropped below a statutory threshold.
It has been alleged that Nationstar violated the federal Homeowner Protection Act (HOPA) which was enacted in 1998 to specifically address problems being experienced by homeowners in cancelling PMI coverage. Under HOPA, a mortgage provider is legally required to terminate a borrower’s Private Mortgage Insurance when the principle balance of the mortgage is first scheduled to reach 78% of the original value of the property, and the borrower is current on his or her mortgage payments. HOPA applies to all primary residential mortgages entered into on or after July 29, 1999. The HOPA requirements apply to a mortgage provider even if they were not the original mortgagor and purchased the loan from a previous lender.
If you are being charged by Nationstar for Private Mortgage Insurance, are current in your mortgage payments, and believe your loan to value ratio is under 78%, you may have a claim for damages as part of a Nationstar lawsuit. For a free, confidential case evaluation, please complete and submit the inquiry form on the right side of this page, or give us a call at (800) 965-1461.