Freedom Mortgage, Loancare settle servicing lawsuits

Freedom Mortgage and Loancare say they’ve settled a long-running fight over servicing practices, two years after a jury awarded a $22 million verdict in the case. 

The agreement disclosed in federal court this week will end both district court and federal appeals court cases. Freedom took the fight to the Third U.S. Circuit Court of Appeals last summer, after a New Jersey federal jury in 2023 ruled in Loancare’s favor and awarded it $22.6 million in damages.

The notice was filed by a special counsel for the case, and follows the sides’ agreement in principle reached last month, according to court filings. It was dismissed with prejudice, meaning the case can’t be relitigated. The terms are confidential, and it’s unclear what the sides will receive in the deal. 

“I can tell you that the…