The Consumer Financial Protection Bureau (CFPB) has requested a Washington federal court to permit it to file an amicus curiae brief in a class action lawsuit against Nationstar Mortgage LLC. The suit accuses Nationstar of unlawfully charging fees for payoff statements.
CFPB Pushes Back Against Nationstar’s Claims
In a motion filed Monday, the CFPB indicated that the proposed class does not oppose the federal agency’s involvement. Nationstar, however, did not respond to the CFPB’s request to file its brief.
The CFPB’s brief challenges Nationstar’s arguments made in a judgment on the pleadings motion filed earlier this year. Nationstar had claimed that a notice-and-cure provision in the deed of trust for named plaintiff Peter Hackinen barred his Fair Debt Collection Practices Act (FDCPA) claim, as well as those of other plaintiffs with similar provisions.
Nationstar Mortgage Fee Suit : Notice-and-Cure Provision Under Fire
Nationstar contends that the notice-and-cure provision requires borrowers to inform them of any breach, such as the fees for payoff statements, allowing them to rectify the issue before legal action is taken. However, the CFPB disputes this interpretation, asserting that the provision does not apply to FDCPA claims.
