Mr. Cooper, one of the country’s biggest mortgage servicers, is facing a proposed class action over how it calculates prepayment penalties on home loans.
The lawsuit, filed on April 20, 2026, in the US District Court for the Northern District of Texas, Dallas Division, was brought by a California borrower, Michael E Kasaba LLC, on behalf of itself and a proposed nationwide class, along with a California sub-class. The case, Michael E Kasaba LLC v. Nationstar Mortgage LLC d/b/a Mr. Cooper, lands Nationstar Mortgage – the Coppell, Texas, servicer better known to borrowers as Mr. Cooper – in the middle of an unusually technical fight that the filing says could reach borrowers across the country.
According to the filing, Nationstar services a portfolio with $1.5 trillion in unpaid principal balance and has more than six million customers nationwide. The plaintiff also alleges that Nationstar provided services through its wholly owned entities Rushmore Servicing and Rushmore Loan Management Services LLC…