Nationstar Sued Over ‘Processing Fee’ for Mortgage Payments Made Online, By Phone

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Nationstar Mortgage LLC, which does business as Mr. Cooper, is the defendant in a proposed class action lawsuit in which a man claims the mortgage servicer has charged an unauthorized “processing fee” for payments made online or over the phone. The lawsuit alleges that neither the plaintiff’s mortgage agreement nor Florida law allows Mr. Cooper to charge such fees for mortgage payments.

According to the nine-page complaint, the plaintiff was charged a “processing fee” on two separate occasions in the amounts of $9.95 and $19.00 for making mortgage payments to Nationstar over the phone or online. The charges were allegedly labeled “E Pay Fee” on the man’s mortgage statements. The case claims such processing fee payments were not expressly authorized in the plaintiff’s mortgage agreement nor under Florida law, which requires that Nationstar pass on any processing payments it receives to the third-party processor with whom it works. The lawsuit argues that third-party processors charge only “a small fraction” of the amount Nationstar charges its customers, indicating that the mortgage servicer retains “a considerable portion” of such payments.

The lawsuit, which is not the first proposed class action filed against Nationstar in recent years, looks to cover anyone in Florida who, “during the applicable limitations period,” paid a processing fee for an online or over-the-phone payment on a mortgage loan owned or serviced by the defendant.