April 29, 2021
Attorney General Tong, DOB Commissioner Perez Alert Homeowners Regarding Unauthorized Bank Account Withdrawals by Mr. Cooper Mortgage Servicer
HARTFORD — Attorney General William Tong and Banking Commissioner Jorge Perez urge Connecticut homeowners whose mortgage loans are serviced by Mr. Cooper, formerly known as Nationstar Mortgage, to check their bank accounts for unauthorized withdrawals. Errors by an electronic payment vendor, ACI Worldwide, triggered the unauthorized withdrawals, which occurred on Saturday, April 24 and may have appeared on consumers’ financial accounts on Monday, April 26.
More than 480,000 borrowers nationwide have been affected by the errors, including Connecticut consumers. In some instances, consumers’ bank accounts were debited for multiple mortgage payments. The unauthorized withdrawals resulted in overdraft fees and other harms for some consumers.
“Connecticut residents who have had multiple unauthorized mortgage payments deducted from their bank accounts may suffer serious financial harm,” Attorney General Tong said. “If your mortgage is serviced by Mr. Cooper, please check your records. If you are a victim of these unauthorized withdrawals, contact the company immediately to begin the process of reimbursement.”
“Any unauthorized withdrawals can have a harmful ripple effect on the finances of Connecticut consumers,” said Commissioner Perez. “Therefore, it is paramount every step is taken to ensure they never happen and if they ever happen again they are quickly rectified. We urge everyone with an account with Mr. Cooper to review their financial accounts to be sure they have not been affected by these transactions.”
Mr. Cooper, which is licensed as a mortgage servicer by the Connecticut Department of Banking, has stated that the errors were likely rectified by Tuesday, April 27 through updates. The company has promised to correct all inaccurate charges. It has also promised to reimburse consumers for overdraft fees and other harms that resulted from the unauthorized withdrawals.
Homeowners whose loans are serviced by Mr. Cooper and who were affected by the unauthorized withdrawals should contact the company directly if they have any questions or concerns and to seek reimbursement of overdraft and other fees. Homeowners can request reimbursement by signing into their online Mr. Cooper account and following the instructions.
Additional information from Mr. Cooper regarding the unauthorized withdrawals is available here.
Homeowners who are unable to resolve their issues caused by the unauthorized withdrawals or who are unable to obtain reimbursement may contact either the Connecticut Department of Banking or the Connecticut Office of the Attorney General.
In December 2020, Attorney General Tong joined with 50 other attorneys general and other federal and state agencies in settling with Nationstar Mortgage, which does business as “Mr. Cooper,” for $86.3 million. Nationstar is the country’s fourth-largest mortgage servicer.
The settlement resolved allegations that Nationstar violated consumer protection laws during its servicing of mortgage loans. The settlement provided restitution for a variety of harms that were identified in the investigation. Thousands of borrowers had problems when their loans were transferred to Nationstar, leading to foreclosure in some circumstances.
Matt Smith, 860-240-8105