LoanCare® Wins $22.6 Million in a 2016 Lawsuit Filed by Freedom Mortgage

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LoanCare (LC) has been awarded $22.6 million in damages in a legal battle against Freedom Mortgage. The court verdict vindicates LoanCare's reputation as a leading mortgage servicer, with Chief District Court Judge Renee Marie Bumb ruling in favor of LoanCare on most claims. Despite a $247,000 claim against LoanCare, the court's decision affirms LoanCare's commitment to superior servicing experiences and advanced technology capabilities.

Positive

• LoanCare awarded $22.6 million in damages in legal battle
• Court verdict vindicates LoanCare's reputation as a leading mortgage servicer
• Chief District Court Judge ruled in favor of LoanCare on most claims

Negative

• The jury returned a verdict in favor of Freedom Mortgage on a $247,000 claim against LoanCare

VIRGINIA BEACH, Va., July 25, 2023 /PRNewswire/ -- On Monday, July 24, 2023, a jury returned its verdict in favor of LoanCare^® and awarded it $22.6 million in damages on claims of conversion, fraudulent inducement, and unjust enrichment against Freedom Mortgage. The verdict vindicates LoanCare's longstanding reputation as a leading mortgage servicer.

Earlier in the trial, Chief District Court Judge Renee Marie Bumb held that Freedom Mortgage's $40 million claim that LoanCare improperly serviced its defaulted loans was meritless finding, after hearing all of Freedom's evidence, that no reasonable jury could find in Freedom's favor. The court directed a verdict giving judgment to LoanCare on those claims leaving one remaining Freedom claim.

On Freedom Mortgage's $247,000 claim that LoanCare improperly billed for certain default work the jury returned a verdict in Freedom's favor. LoanCare respectfully disagrees with that part of the decision. The billing was a result of the error in the billing process from 2014 that was corrected, and the claim was settled by the parties at that time.

"As we celebrate the court's decision, LoanCare remains focused on our mission to deliver superior servicing experiences and the most advanced technology capabilities to lenders, homeowners and investors," said Dave Worrall, President of LoanCare. "This victory only reinforces our resolve to continue innovating, delivering exceptional products, and providing unparalleled customer satisfaction."

The court ruling affirms that LoanCare remains a trusted industry leader with an unwavering commitment to the highest standards of ethics, accountability, and excellence.

About LoanCare
LoanCare is a top national provider of full service, component, and interim mortgage loan subservicing. The company is known for delivering a superior customer experience through personalization and convenience. Its proprietary portfolio management platform, LoanCare Analytics™, identifies risk and opportunity quickly to enable smarter decisioning across the servicing spectrum. For 40 years, LoanCare has been servicing loans for banks, credit unions, independent mortgage companies and portfolio investors. LoanCare is part of Fidelity National Financial (NYSE: FNF), a Fortune 500 company and leading provider of title insurance and transaction services to the real estate and mortgage industries. For more information, visit www.loancare.com.

View original content:https://www.prnewswire.com/news-releases/loancare-wins-22-6-million-in-a-2016-lawsuit-filed-by-freedom-mortgage-301885660.html

SOURCE LoanCare

FAQ

What is the ticker symbol for LoanCare?

The ticker symbol for LoanCare is LC.

What was the amount of damages awarded to LoanCare?

LoanCare was awarded $22.6 million in damages.

What claims did LoanCare win in the legal battle against Freedom Mortgage?

LoanCare won claims of conversion, fraudulent inducement, and unjust enrichment against Freedom Mortgage.

What claim did the jury return in favor of Freedom Mortgage against LoanCare?

The jury returned a verdict in favor of Freedom Mortgage on a $247,000 claim against LoanCare.

What did the court ruling affirm about LoanCare?

The court ruling affirmed LoanCare's commitment to superior servicing experiences and advanced technology capabilities.