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Mortgage Lending

About This Category

Track major mortgage lender lawsuits including price-fixing, RESPA violations, redlining, predatory lending, and foreclosure fee abuses.

12

Total Cases

8

Settled Cases

$12350723M+

Total Settlements

Filter Cases
Showing 12 of 12 cases

All Cases (12)

Active
Optimal Blue Price-Fixing
Mendez v. Optimal Blue LLC et al.

Filed

October 2024

Jurisdiction

Middle District of Tennessee

Plaintiff Firm

Lockridge Grindal Nauen (lead counsel)

Next Milestone

Discovery and class certification proceedings ongoing

Key Issue

Price-fixing conspiracy among 29 mortgage lenders using Optimal Blue's pricing platform to coordinate and inflate mortgage interest rates, violating Sherman Antitrust Act Section 1

Impact

Potential $1B+ class action affecting millions of homebuyers who paid artificially inflated mortgage rates; could fundamentally reshape mortgage pricing transparency and platform liability

Settled6900000
Wells Fargo Buydown
Wells Fargo Buydown Agreement Class Action

Filed

August 2019

Jurisdiction

Northern District of California

Plaintiff Firm

Lieff Cabraser Heimann & Bernstein LLP

Next Milestone

Claims period closed, distribution complete

Key Issue

Wells Fargo allegedly violated Truth in Lending Act by failing to properly disclose buydown agreements where sellers paid upfront fees to reduce buyers' interest rates, causing borrowers to pay higher rates than disclosed

Impact

$6.9 million settlement benefiting approximately 11,000 class members who obtained mortgages with undisclosed buydown agreements between 2013-2017

Settled1950000
Freedom Mortgage RESPA Kickbacks
CFPB v. Freedom Mortgage Corporation & Realty Connect USA

Filed

August 2023

Jurisdiction

CFPB Administrative Action

Plaintiff Firm

Consumer Financial Protection Bureau (CFPB)

Next Milestone

Compliance monitoring ongoing

Key Issue

Freedom Mortgage and Realty Connect violated RESPA Section 8 by exchanging illegal kickbacks: Freedom paid Realty Connect for referrals, and Realty Connect steered homebuyers to Freedom in exchange for payments disguised as 'marketing services'

Impact

$1.95 million civil penalty; companies ordered to cease illegal kickback arrangements and implement compliance monitoring; protects consumers from inflated costs due to referral fees

Settled2000000
Cypress/Rushmore Foreclosure Fees
Massachusetts AG v. Cypress Loan Servicing (f/k/a Rushmore)

Filed

August 2025

Jurisdiction

Massachusetts State Court

Plaintiff Firm

Massachusetts Attorney General Andrea Campbell

Next Milestone

Restitution distribution to affected borrowers ongoing

Key Issue

Cypress Loan Servicing (formerly Rushmore, acquired by Select Portfolio Servicing, with ties to PHH Mortgage/Onity Group) violated Massachusetts consumer protection and debt collection laws by charging illegal foreclosure-related fees and failing to properly apply borrower payments

Impact

$2 million settlement with $1.5M in consumer restitution and $500K civil penalty; affects Massachusetts homeowners who were charged improper fees during foreclosure proceedings 2019-2024

Settled (No-Action Letter Issued)1500000
Draper & Kramer Redlining
CFPB v. Draper & Kramer Mortgage Corporation

Filed

January 17, 2025

Jurisdiction

Northern District of Illinois

Plaintiff Firm

Consumer Financial Protection Bureau (CFPB)

Next Milestone

Case closed; CFPB monitoring ceased per no-action letter

Key Issue

Draper & Kramer engaged in redlining by discouraging mortgage applications in majority-Black and Hispanic neighborhoods in Chicago and Boston metro areas (2019-2021), violating Equal Credit Opportunity Act and Consumer Financial Protection Act

Impact

$1.5 million civil penalty and 5-year ban from residential mortgage lending; CFPB later issued no-action letter (May 2025) ceasing enforcement after company had already ceased operations and paid penalty

Dismissed (Private Class Action Filed)
Vanderbilt Predatory Lending
CFPB v. Vanderbilt Mortgage & Finance, Inc.

Filed

January 6, 2025

Jurisdiction

Federal Court (CFPB case dismissed; private action ongoing)

Plaintiff Firm

Consumer Financial Protection Bureau (CFPB) / Private Class Action Plaintiffs

Next Milestone

Private class action litigation ongoing

Key Issue

Vanderbilt Mortgage (Berkshire Hathaway subsidiary) violated Truth in Lending Act by failing to verify borrowers' ability to repay manufactured home loans, using artificially low living expense estimates, and approving loans for borrowers projected to fail (2014-2025)

Impact

CFPB lawsuit dismissed February 28, 2025 after Trump administration change; private borrowers filed class action April 29, 2025 reviving claims; affects low-income and rural homeowners trapped in unaffordable manufactured housing loans

Settled$25 billion
National Mortgage Settlement
National Mortgage Settlement v. Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, Ally Financial

Filed

February 9, 2012

Jurisdiction

Multi-State

Plaintiff Firm

49 State Attorneys General + DOJ

Key Issue

Foreclosure abuse, robo-signing of documents, improper documentation

Impact

Largest mortgage settlement in U.S. history providing relief to approximately 1 million homeowners

Settled$3.7 billion
Wells Fargo Mismanagement
CFPB v. Wells Fargo Bank - Mortgage and Auto Loan Mismanagement

Filed

December 20, 2022

Jurisdiction

Federal

Plaintiff Firm

Consumer Financial Protection Bureau

Key Issue

Widespread mismanagement of auto loans, mortgages, and deposit accounts

Impact

One of largest CFPB enforcement actions; $2 billion in consumer redress plus $1.7 billion civil penalty

Settled$86.3 million
Nationstar/Mr. Cooper Settlement
Multi-State Settlement v. Nationstar Mortgage LLC (Mr. Cooper)

Filed

December 7, 2020

Jurisdiction

Multi-State

Plaintiff Firm

51 State Attorneys General

Key Issue

Mortgage servicing violations, improper foreclosure practices, failure to honor loan modifications

Impact

Significant multi-state enforcement action against major servicer

Settled$108 million
Countrywide Excessive Fees
FTC v. Countrywide Home Loans - Excessive Fee Charges

Filed

June 7, 2010

Jurisdiction

Federal

Plaintiff Firm

Federal Trade Commission

Key Issue

Collecting excessive fees from cash-strapped homeowners, improper servicing charges

Impact

Major FTC enforcement against predatory servicing practices

Settled$500 million
Countrywide Investor Settlement
Investor Settlement v. Countrywide Financial Corporation

Filed

May 2016

Jurisdiction

Federal

Plaintiff Firm

Investor Class

Key Issue

Misleading investors about mortgage-backed securities quality and risk

Impact

Major securities fraud settlement related to subprime mortgage crisis

Ongoing
Veterans United RESPA
Peyton et al. v. Veterans United Home Loans et al.

Filed

February 18, 2026

Jurisdiction

Western District of Missouri

Plaintiff Firm

Hagens Berman Sobol Shapiro

Next Milestone

Early litigation; class certification pending

Key Issue

Veterans United Home Loans accused of RESPA violations through illegal kickback scheme with affiliated real estate agents (35% commission fees) and deceptive marketing falsely implying VA affiliation; steering military veterans to higher-cost loans

Impact

First major lawsuit targeting mortgage lender steering practices and RESPA violations in post-NAR settlement era; expands commission litigation from real estate to mortgage lending