BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of investors of Nationstar Mortgage Holdings Inc. (“Nationstar” or the “Company”) (NYSE: NSM). Nationstar investors are encouraged to call Howard G. Smith, Esq. to discuss the alleged wrongdoing, and steps investors can take to recover any losses caused by the Company’s alleged fraud.
The investigation focuses on whether the Company misled investors, and/or failed to disclose material adverse facts about the Company’s business, operations, prospects and performance. Nationstar generates revenues primarily through its loan servicing business, during the relevant period the Company misled investors into believing that it was improving its profitability as a result of increased servicing revenue on its expanding loan portfolio. Unbeknownst to investors, Nationstar in fact engaged in unethical and allegedly illegal behavior in connection with servicing the loan portfolio. Specifically, Nationstar had been overcharging borrowers and illegally enhancing its profits through illicit practices, such as charging for repeated, unnecessary inspections, which resulted in additional late payment fees, and pressuring mortgagors to carry out expensive modifications and refinances on their mortgages. On May 5, 2015, Nationstar issued disappointing first quarter 2015 financial results. The Company reported a net loss of $48.3 million, on revenues that had fallen 15% year-over-year. On this news, shares of Nationstar fell by over $6.60 to close at $19.51 per share on May 5, 2015.
If you invested in Nationstar securities prior to May 5, 2015, you are encouraged to contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.
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