Nations Direct Mortgage Settlement Ends Class Action Suit Over December 2023 Data Breach

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Nations Direct Mortgage (NDM) has agreed to settle a class action lawsuit over a December 2023 cyberattack that allegedly exposed the private information of current and former customers and employees affiliated with the mortgage lending partner.

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The NDM settlement received preliminary approval from the court on October 16, 2025 and covers approximately 83,108 individuals in the United States who received notice from Nations Direct Mortgage that their private information was compromised by the data breach. Included in the Nations Direct Mortgage settlement class are employees who entered an arbitration agreement with NDM, which court documents say the company will not enforce.

The court-approved website for the Nations Direct Mortgage class action settlement can be found at https://www.NDMSettlement.com/.

According to the website, NDM settlement class members who submit a valid, timely claim form have multiple options for reimbursement. Those who submit with their claim form documented proof of out-of-pocket losses stemming from the data breach are eligible to receive a one-time cash payment of up to $2,750. The website adds that the data breach-related losses must have occurred between December 30, 2023 and January 7, 2026, and include expenses related to identity fraud, bank fees and credit card fees.

Further, class members who spent time remedying issues related to the Nations Direct Mortgage data breach may file a claim form for a maximum of two hours of lost time, at a rate of $25 per hour.

In addition to both reimbursement options, settlement class members who are California residents are also eligible to receive a one-time cash payment of $75 for statutory damages under state law, the site states.

Per court documents, class members may elect to receive settlement payouts via check or electronic payment, and all checks must be cashed within 60 days after issuance before expiration.

All settlement class members are also eligible to enroll in two free years of Kroll credit monitoring and identity theft insurance, which provides real-time monitoring of credit files, dark web scanning, public records monitoring and identity theft insurance.

As part of the class action settlement, NDM has also agreed to implement certain business practice changes to further secure its systems and protect private consumer information.

To submit a Nations Direct claim form online, class members can head to this page and enter the unique class member ID and pin found on their copy of the settlement notice. Consumers who believe they may be a class member but did not receive a settlement notice should contact the settlement administrator to confirm their identity and receive their login information.

Alternatively, class members can download a PDF of the claim form to print, fill out, and return by mail to the address listed near the bottom of the second page of the document.

All NDM settlement claim forms must be submitted online or by mail by January 7, 2026.

The court will determine whether to grant final approval to the NDM class action settlement at a hearing on January 22, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The National Direct Mortgage class action lawsuit alleged that the company failed to protect the private information of customers and employees from a targeted cyberattack in December 2023. According to court documents, the personal information that may have been compromised in the breach included names, addresses, contact information, dates of birth and Social Security numbers.

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