Nationstar Mortgage Holdings Inc. has been warned by a federal regulator that regulatory actions could be taken against it over possible violations of the Real Estate Settlement Procedures Act.
A notification was sent on April 24 by the Consumer Financial Protection Bureau indicating that its office of enforcement is considering whether to recommend an enforcement action against Nationstar.
Potential violations of RESPA, the Consumer Financial Protection Act and the Homeowners Protection Act were uncovered by a CFPB examination in 2014.
Dallas-based Nationstar disclosed the potential action in its first-quarter 2018 10-Q filing with the Securities and Exchange Commission.
The CFPB advises companies being investigated about potential enforcement actions through the Notice and Opportunity to Respond and Advise process. With the notice, the companies are given an opportunity to present their positions to the CFPB before an enforcement action can be recommended or commenced.
“The company believes it is premature to predict the potential outcome or to estimate any potential financial impact in connection with any potential CFPB enforcement action,” the filing states. “The company has not recorded an accrual related to this matter as of March 31, 2018, as the company does not believe a loss is probable. There is a reasonable possibility that a loss may be incurred; however, the possible loss or range of loss is not estimable.”
The CFPB issued a consent order against Nationstar in March 2017 over alleged
noncompliance with the Home Mortgage Disclosure Act.
