• Key Insight: Learn the fees assessed by Roundpoint Mortgage Servicing that homeowners are challenging.
• Supporting data: Consumers have several pending class action lawsuits against major servicers over alleged unlawful fees. 
• Forward Look: Prepare for Roundpoint to defend its fee practices in federal court.

Another servicer is facing scrutiny over its fees as a new class action lawsuit alleges the company's charges violate consumer protection law.

Roundpoint Mortgage Servicing is denying accusations in a new complaint in West Virginia that it charges borrowers various fees not authorized by the homeowners' contracts nor state law. Although the fees in question aren't the so-called "pay-to-pay" charges that have been oft-litigated, the new claims are another challenge to a servicer's operations, in this case from struggling homeowners. 

Emily Branch and Brian Branch, the homeowners who sued the servicer last month in state court, point to alleged charges that exceeded Roundpoint's own fee schedule. Those include appraisals, "broker price opinion" fees, and other default-related charges the lawsuit claims are prohibited by West Virginia statute. 

"In assessing these charges, RoundPoint profits by leveraging its position of power over homeowners in financial distress," wrote attorneys for the Branches in the state complaint.

The servicer removed the lawsuit to a federal court this week, and in those filings said it denies the allegations. Roundpoint is owned by CrossCountry Mortgage, part of the retail giant's acquisition of the Two Harbors real estate investment trust earlier this year. 

Neither attorneys for the parties nor a spokesperson for CrossCountry Mortgage responded to requests for comment Friday. 

The bad fees

The Branches secured an approximately $130,000 loan from Wells Fargo in 2017, and servicing was transferred to Roundpoint in 2021, according to the complaint. Their troubles began in 2022, when Roundpoint allegedly held a larger monthly payment in a suspense account, and in 2023, when the servicer gave the homeowners a loan modification. 

The homeowners say Roundpoint improperly assessed default fees buried inside various "corporate advance" line items, in violation of their mortgage agreement. They also allege the servicer assessed fees of $1,010 twice within a prohibited six-month window for a single appraisal, one of which the company later recanted. 

The company also assessed a $525 broker price opinion fee, for a real estate licensee's opinion of value. The Branches note the BPO is not a recoverable default charge in West Virginia and that the appraisal and BPO fees exceeded Roundpoint's own fee schedule. 

The complaint also points to an unauthorized default charge simply listed as "UNKWN". The Branches filed for bankruptcy in August 2025, and Roundpoint sought to collect the unauthorized charges in the federal forum. 

Next steps

The Branches, seeking to certify three subclasses of affected West Virginia-based borrowers, didn't specify the amount of potential damages nor the number of class members. They're suing Roundpoint for violating the West Virginia Consumer Credit and Protection Act. 

The servicer is facing a separate pending class action lawsuit in Wyoming over accusations that it failed to record borrower payments, improperly charged fees and mishandled corrections. Roundpoint agreed to a $975,000 settlement in Massachusetts in 2022 for other claims, including its alleged failure to adequately assist borrowers to avoid foreclosure. 

Newrez and Mr. Cooper have also dealt with servicing-related complaints in recent years. The Rithm Capital-owned servicer settled pay-to-pay claims earlier this year amid consumers' push for class certification, while Mr. Cooper has battled multiple claims, earning a victory in a junk fee claim last year.