Nationstar Mortgage LLC has agreed to a more than $9 million settlement that resolves allegations it overcharged borrowers for interest and collected illegal fees.

California law requires that residential lenders do not charge interest on a new mortgage prior to the day that loan proceeds are disbursed.

But Dallas-based Nationstar, which does business as Mr. Cooper, is accused of violating the law on 48,000 mortgage transactions.

Source: Mortgage Daily