Office of Financial Institutions
Nationstar Agrees to $105,000 Settlement
FRANKFORT, Ky. (Jan. 9, 2008) – The Kentucky Office of Financial Institutions (OFI) today announced it has reached a $105,000 settlement agreement with Nationstar Mortgage LLC, formerly known as Centex Home Equity Company LLC.
“This is the largest settlement our Compliance Branch has ever been responsible for,” said OFI Executive Director Cordell Lawrence.
The settlement arises from OFI examinations of the mortgage company’s Lewisville, Texas, and Louisville, Ky., offices in July 2006.
“During the examination and investigation we concluded that Nationstar had employed numerous unregistered loan officers in direct violation of Kentucky statutes,” said Financial Institutions Division Director David Coyle.
A detailed list of alleged federal and state violations can be found in the settlement agreement posted on OFI’s Web site at www.kfi.ky.gov/legalresources/enforcementactions/mortgageea.htm.
Nationstar has denied that it has violated any applicable state or federal law. Without admitting liability, Nationstar agreed to a settlement to resolve the matter without further litigation. In lieu of a fine or penalty, Nationstar agreed to voluntarily contribute $105,000 to support the Nationwide Mortgage Licensing System (NMLS). NMLS is a collaborative effort among state regulators to bring greater efficiency and accountability to the supervision of the mortgage industry by providing a centralized and standardized system for mortgage licensing.
Also OFI has directed Nationstar to adjust several customers’ loans where there may have been violations surrounding the refinancing terms. Nationstar made refunds to customers, reinstated and reduced interest rates and refunded fees noted in the March 2007 examination report.
“We hope this settlement agreement sends a loud message to the industry that using unregistered loan officers is a serious matter,” Coyle said.
OFI encourages people to check the background of their loan officer, including registration status and possible enforcement actions, online at www.kfi.ky.gov/search.htm or by calling 800-223-2579. Customers may also use these resources to check their bank, credit union, payday lender, loan company or investment adviser or broker.
OFI is an agency of the Department of Public Protection in the Environmental and Public Protection Cabinet. It supervises the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. OFI’s mission is to serve the public through effective and efficient regulation that promotes consumer confidence and economic growth.