Nationstar, KIRP Agree to Settle Lawsuit Over Loan Auctions
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Nationstar Mortgage Holdings Inc., the mortgage-servicer majority owned by Fortress Investment Group LLC, agreed to settle a lawsuit in New York in which it was accused of auctioning loans without notifying investors.
State Supreme Court Justice Eileen Bransten in Manhattan in March ordered Nationstar to stop selling some loans after investor KIRP LLC sued to block the auctions. It asked for $35 million in damages. The parties have agreed in principle to settle the case, according to a letter to the judge dated yesterday. Terms weren’t disclosed.