Who Mr. Cooper is and what it reports
Mr. Cooper is the brand under which Nationstar Mortgage LLC services home loans. A mortgage servicer collects monthly payments, runs the escrow account that pays property taxes and insurance, handles loss-mitigation applications and reports each borrower’s payment history to Equifax, Experian and TransUnion. The CFPB has described Nationstar as one of the nation’s largest mortgage servicers and the largest non-bank mortgage servicer in the United States. Many borrowers never chose Mr. Cooper; their loans were transferred to it after closing.
On October 1, 2025, Rocket Companies completed its $14.2 billion all-stock acquisition of Mr. Cooper Group, which Rocket called the largest home loan servicer in the country. Mr. Cooper Group was merged into a wholly owned Rocket subsidiary, with Nationstar beneath it, and Rocket said Mr. Cooper’s servicing operations would carry the Rocket brand. For borrowers, that means another round of system and brand changes on top of the transfers that brought many loans to Mr. Cooper in the first place. See our Rocket Mortgage guide for more on the combined company.
When Mr. Cooper reports your mortgage, the FCRA treats it as a “furnisher,” with a duty to investigate disputes the bureaus forward to it. As a servicer, it also has duties under RESPA to correct servicing errors.
What the CFPB alleged about Nationstar’s servicing
On December 7, 2020, the CFPB filed a complaint in federal court in Washington, D.C. alleging that Nationstar, doing business as Mr. Cooper, engaged in unlawful mortgage servicing practices between January 2012 and January 2016. According to the CFPB, Nationstar:
- failed to identify loans with pending loss-mitigation applications or trial modifications, and did not honor some borrowers’ modification agreements;
- foreclosed on borrowers it had told would not be foreclosed on while their applications were pending;
- improperly raised some borrowers’ permanent modified monthly payments;
- misstated when borrowers could cancel private mortgage insurance and did not remove it on time; and
- did not disburse property tax payments from escrow on time, and did not properly perform escrow analyses for borrowers in Chapter 13 bankruptcy.
The court entered an order on December 8, 2020, requiring about $73 million in redress to more than 40,000 borrowers and a $1.5 million civil penalty. Attorneys general from all 50 states and the District of Columbia, along with state bank regulators, settled with Nationstar the same day. These were allegations resolved by settlement and do not decide anything about your loan, but each one describes a way a servicing error can become a false late payment on a credit report.
Errors that show up on Mr. Cooper accounts
- Modification payments reported as late. You paid the modified amount, but the account was reported against the old payment.
- Transfer lates. A payment sent to your prior servicer around the transfer date reported as missed. Under RESPA, a payment sent to the old servicer by the due date during the 60 days after a transfer may not be treated as late (12 U.S.C. § 2605(d)).
- Escrow errors that create a shortfall later reported as a delinquency.
- Forbearance and repayment-plan payments reported as missed.
- Refinanced or paid-off loans still showing a balance.
- Duplicate tradelines under Mr. Cooper, Nationstar and Rocket.
How to dispute a Mr. Cooper account
- Pull your reports from AnnualCreditReport.com and save dated copies.
- Gather proof. Bank records for each payment, transfer notices (“hello” and “goodbye” letters), modification or forbearance agreements and escrow statements.
- Dispute with each bureau showing the error through Equifax, Experian and TransUnion, stating exactly what is wrong and attaching your records.
- Send a written RESPA notice of error to the address Mr. Cooper designates for that purpose (12 U.S.C. § 2605(e); 12 C.F.R. § 1024.35). For 60 days after receiving a notice of error about a payment, the servicer may not report adverse information about that payment to any bureau.
- Track the results. Bureaus generally have 30 days to reinvestigate, and the servicer must finish its investigation within that time (§ 1681s-2(b)(2)).
The bureau dispute is what creates an FCRA claim. There is no private right of action to enforce a furnisher’s general accuracy duties under § 1681s-2(a), including its identity theft duties under § 1681s-2(a)(6). The claim is under § 1681s-2(b), after a bureau notifies the servicer of your dispute and it fails to reasonably investigate and correct the information. For a fraudulent loan, ask the bureaus to block it under § 1681c-2.
Your FCRA rights
- Furnisher investigation (§ 1681s-2(b)). The servicer must review what the bureau sends and correct, delete or block anything inaccurate, incomplete or unverifiable.
- RESPA protections (§ 2605). Notice-of-error rights, the 60-day bar on adverse reporting about a disputed payment, and the transfer grace period.
- Bureau duties (§§ 1681e(b), 1681i). A bureau that keeps reporting the error after your dispute may face a separate claim.
What you may recover
For a negligent violation, you may recover actual damages, such as a denied refinance, a higher rate and emotional distress, plus attorney’s fees and costs (15 U.S.C. § 1681o). For a willful violation, you may recover actual damages or statutory damages of $100 to $1,000, punitive damages as the court allows, and attorney’s fees and costs (§ 1681n). RESPA violations can carry separate damages.
Get a free case review before your deadline
FCRA claims generally must be filed within two years after you discover the violation and no later than five years after it occurred (15 U.S.C. § 1681p). If Mr. Cooper is reporting a late payment, modification or balance that isn’t right and a bureau dispute didn’t fix it, gather your records and request a free case review. FCRA Attorneys, with offices in Dallas, Houston, Chicago, Los Angeles and Atlanta, files FCRA cases in federal court and works on contingency: no fee unless we win. Learn more about our FCRA lawyers or see our other company guides.
Questions about suing Mr. Cooper
Can I sue Mr. Cooper over my credit report?
Possibly. Nationstar Mortgage, doing business as Mr. Cooper, is a furnisher of credit information. If you dispute through Equifax, Experian or TransUnion and it fails to reasonably investigate and correct inaccurate data after the bureau notifies it, you may have a claim under 15 U.S.C. § 1681s-2(b).
Is Mr. Cooper part of Rocket now?
Yes. Rocket Companies completed its acquisition of Mr. Cooper Group on October 1, 2025, and said Mr. Cooper's servicing operations would carry the Rocket brand. Your loan may be reported under Mr. Cooper, Nationstar or Rocket depending on timing, so check for duplicates and dispute any that are wrong.
What did the CFPB allege against Nationstar?
In December 2020, the CFPB alleged that Nationstar, doing business as Mr. Cooper, violated federal consumer financial laws in servicing mortgages from 2012 to 2016, including failing to honor some loan modifications, foreclosing while loss-mitigation applications were pending and not disbursing property taxes from escrow on time. The court entered an order requiring about $73 million in redress and a $1.5 million penalty, and states reached parallel settlements.
What does it cost to hire FCRA Attorneys?
Nothing up front. We handle FCRA cases on contingency, so there is no fee unless we win, and the FCRA shifts reasonable attorney's fees and costs to the company when the consumer prevails (15 U.S.C. §§ 1681n, 1681o).
Sources
- CFPB enforcement action: Nationstar Mortgage, LLC d/b/a Mr. Cooper (filed December 7, 2020)
- CFPB press release: Consumer Financial Protection Bureau and Multiple States Enter into Settlement with Nationstar Mortgage, LLC for Unlawful Servicing Practices
- Rocket Companies Form 8-K reporting completion of the Mr. Cooper acquisition (October 1, 2025)
- Joint press release: Rocket Companies Closes $14.2 Billion Acquisition of Mr. Cooper (SEC exhibit 99.1)
Updated November 2026. This page is general information, not legal advice.