A lawsuit has been filed against a major mortgage company, alleging improper fees were charged to borrowers across multiple states. On February 1, 2026, Madeline McCabe and John Blair filed a class action complaint in the United States District Court for the Northern District of Ohio against Nationstar Mortgage LLC, doing business as Mr. Cooper and now Rocket Mortgage.
The plaintiffs claim that Nationstar Mortgage LLC improperly charged them and other borrowers a “Third Party Reconveyance Preparation Fee” or similar fees when paying off their mortgages. These fees were allegedly deducted from escrow accounts without proper authorization or justification. The lawsuit argues that these charges are not permissible under the laws of 36 jurisdictions, including Ohio, where lenders are required to release satisfied mortgages without imposing additional fees beyond actual government recording costs.
Madeline McCabe received her right-to-sue from an estate involved in a related case against Nationstar, while John Blair was directly affected by these charges upon paying off his mortgage in 2024. The plaintiffs assert that Nationstar’s actions violated trust and fiduciary duties as they served as escrow agents for borrowers’ funds. They allege that the company did not provide accurate payoff statements and instead inflated balances with unauthorized fees.
The plaintiffs seek certification of the case as a class action to represent all affected individuals who were similarly charged by Nationstar Mortgage LLC. They demand damages equivalent to the improper fees collected, restitution, pre-judgment interest, and any further relief deemed appropriate by the court. Additionally, they request an accounting of all amounts wrongfully taken from class members’ accounts.
Attorney Brian Ruschel represents the plaintiffs in this case before Judge [Name Unavailable]. The case ID is 1:26-cv-00264.
Source: 126cv00264_McCabe_v_Nationstar_Mortgage_LLC_Complaint_Northern_District_Ohio.pdf
