Mr. Cooper Foreclosure Defense | New Jersey Foreclosure Defense Attorneys

Mr. Cooper

Mortgage Foreclosure Defense with Mr. Cooper

Are you behind on your mortgage payments and facing foreclosure from Mr. Cooper f/k/a Nationstar?

Being under the threat of foreclosure can be confusing and frustrating.

Have any of the following happened to you:

1. Mr. Cooper has filed a foreclosure complaint against you

2. Mr. Cooper has refused to offer you a loan modification or denied you for home retention loss mitigation options

3. Mr. Cooper has initiated letters from lawyers and/or a foreclosure complaint while you were being reviewed for loss mitigation options

4. Mr. Cooper has threatened to initiate foreclosure proceedings if you do not bring the loan current

5. Mr. Cooper has refused to accept mortgage payments or offer you a repayment plan or reinstatement of your loan

Dealing with Mr. Cooper f/k/a Nationstar on your own can be confusing and difficult. We can help to demystify the process and make sure that your rights are protected throughout the process.

About Mr. Cooper f/k/a Nationstar

Mr. Cooper f/k/a Nationstar Mortgage Corporation is the largest non-bank residential mortgage lender and servicer in the United States. Mr. Cooper also ranks 15th in the United States in loan originations. Overall, Mr. Cooper boasts an incredible 3.5 million customers. Mr. Cooper was founded in 1994 and is headquartered in Coppell, Texas. Mr. Cooper has a special focus on FHA loans and first-time buyers. Within Mr. Cooper’s corporate family is Mr. Cooper Group Inc., which also includes Xome, a real estate services company.

Xome is an online real estate platform launched in 2015. By using Xome, which is an online auction platform for real estate properties, individuals can find, buy and sell properties. Xome covers all aspects of the real estate process with a special focus on auctions, from valuation via appraisal and CMA methods, to title services, notary signings, etc.

Mr. Cooper Group Inc. (NASDAQ: COOP) provides customer-centric servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. For more information, visit www.mrcoopergroup.com.

Biographies of C-Suite Executives

Jay Bray

Jay Bray serves as the Chairman and Chief Executive Officer of Mr. Cooper Group. He holds a B.A.A. in Accounting from Auburn University and is a Certified Public Accountant in the State of Georgia.

From 1994 to 2000, Jay held a variety of leadership roles at Bank of America and predecessor entities, where he managed the asset backed securitization process for mortgage-related products, developed and implemented a secondary execution strategy and profitability plan and managed investment banking relationships, secondary marketing operations and investor relations. Additionally, Jay led the portfolio acquisition, pricing and modeling group at Bank of America.

CFPB Complaint Activity

$90 Million Settlement for Unfair & Deceptive Practices & Failing to Honor Modifications

Mr. Cooper is the nation’s largest non-bank servicer of mortgage loans and fourth-largest servicer of mortgage loans generally. In 2020, Mr. Cooper settled a lawsuit filed by the Consumer Financial Protection Bureau (“CFPB”) in Federal Court in the District of Columbia by agreeing to refund $90 million and to pay a $6.5 million civil penalty for violating the rights of over 115,000 homeowners. Link to article here. The Consent Order is available here. The Memorandum of Understanding from the Department of Justice is available here.

Mr. Cooper—then Nationstar—bought homeowner’s mortgages in bulk and failed to identify loans with existing modifications. Many homeowners were in the midst of making Trial Modifications when Nationstar took over the loans and then Nationstar failed to honor those modifications, causing harm to millions of homeowners. 53 State Attorneys General for States and Territories attested to complaints by their constituents about modifications that were not honored. New Jersey Attorney General Gurbir S. Grewal issued a press release noting that the settlement affected 2,075 New Jersey borrowers, and had a total value to those borrowers of approximately $3.45 million, making New Jersey residents some of the most affected by Mr. Cooper and Nationstar’s unfair and deceptive foreclosure practices.

“Mortgage servicers are entrusted with handling significant financial transactions for millions of Americans, including struggling homeowners,” said CFPB Director Kathleen Kraninger in a statement. “[Mr. Cooper] broke that trust by engaging in unfair and deceptive practices prohibited by the Consumer Financial Protection Act of 2010, as well as violations of the Real Estate Settlement Procedures Act and the Homeowner’s Protection Act.”

Specifically, the CFPB alleged that between Jan. 2012 and Jan. 1, 2016, Nationstar:

Failed to identify loans on its systems that had pending loss-mitigation applications or trial-modification plans, and as a result failed to honor borrowers’ loan modification agreements.
Foreclosed on borrowers to whom it had promised it would not foreclose while their loss mitigation applications were pending
Improperly increased borrowers’ permanent, modified monthly loan payments, mispresented to borrowers when they would be eligible to have their private mortgage insurance premiums canceled, and failed to timely remove private mortgage insurance from borrowers’ accounts.
Failed to timely disburse borrowers’ tax payments from their escrow accounts and failed to properly conduct escrow analyses for borrowers during their Chapter 13 bankruptcy proceedings.

Nationstar was well known for failing to honor mortgage modifications on the portfolio of loans it acquired. Between January 2012 and January 1, 2016, in numerous instances Nationstar failed to identify loans on its systems that had pending loss-mitigation applications or trial-modification plans, and as a result failed to honor borrowers’ loan modification agreements. Nationstar allegedly foreclosed on borrowers to whom it had promised it would not foreclose while their loss mitigation applications were pending.

On December 7, 2020, the Consumer Financial Protection Bureau (Bureau) filed a complaint and proposed stipulated judgment and order against Nationstar Mortgage, LLC, which does business as Mr. Cooper (Nationstar).

The proposed judgment and order, which the court entered on December 8, 2020, requires Nationstar to pay approximately $73 million in redress to more than 40,000 harmed borrowers. It also requires Nationstar to pay a $1.5 million civil penalty to the Bureau. Attorneys general from all 50 states and the District of Columbia and bank regulators from 53 jurisdictions covering 48 states and Puerto Rico, the Virgin Islands, and the District of Columbia settled with Nationstar the same day and their settlements are reflected in separate actions, concurrently filed in the United States District Court for the District of Columbia.

Applying for Loss Mitigation with Mr. Cooper

If you haven’t already done so, create your online portal so you have access to all the documents Mr. Cooper issues related to your loan

Call Mr. Cooper Loan Servicing’s loss mitigation department at: 888-480-2432

Call their customer service department at: 888-480-2432

Fax their loss mitigation department at: 214-488-1993 or 972-459-1611

Email documents to their loss mitigation department: [email protected] (this email address is used for documents only – documents will be received and attached to your account but you will not receive email communication back from Mr. Cooper)

Applying for Loss Mitigation with Mr. Cooper

Mr. Cooper’s Loss Mitigation Page is here – Loss Mitigation Assistance

Mr. Cooper has a Loss Mitigation Portal to upload documents
Mr. Cooper uses an in-house cloud-based native loan servicing platform utilizing its Sagent/Xome IP to provide a self-service borrower portal for accessing loan information and uploading loss mitigation documents.

The following documentation may be required during the process:

IRS Form 4506-T
Borrower(s) Financial Report
Hardship Letter
- Brief explanation of reason for the hardship (such as: illness or job loss) – signed and dated
Income Documentation:
- Hourly/Salaried Employees – all full and part-time jobs
  - Most recent pay stubs for the past (30) days including year-to-date income
  - Checking and savings account statements for the past (2) months – include all pages
  - Most recent Tax Returns that are complete with all schedules and attachments (W-2’s and/or 1099’s)
- Self-Employed:
  - A current year profit and loss statement – signed and dated
  - Checking and savings account statements for the past (2) months, both personal and business – include all pages
  - Most recent business tax returns that are complete with all schedules and attachments (W-2’s and/or 1099’s)
- Other Household Income (if applicable) – In addition to the above:
  - Non-borrower contribution – notarized letter of contribution amount along with proof of their income. Please see above the Income Documentation section to supply this proof of income.
  - For household members who have other income (such as: Social Security/pension, rental leases, disability, death benefits/annuity, unemployment or food stamp income), please provide a copy of the benefit statement(s), which includes the amount, frequency and duration of this benefit.
  - Alimony, separate maintenance and/or child support payments (note: this income need not be revealed if you do not wish to have this source of income considered). If you choose to have it considered, please provide a copy of the divorce/separation or any other agreement that states the amount, frequency and duration of these payments.

If you wish to sell the property, you will also need to provide:
- Copy of the Listing Agreement
- Copy of the Sales Contract (if available)
- Copy of the Estimated Settlement Statement (if available)
- Signed Third Party Authorization Form

Social Channels

Instagram: mrcooperhomeloans

Twitter: @mrcooper

LinkedIn: /mrcoopermortgage/

Facebook: /MrCooperHomeLoans/

Recent Acquisitions and Divestitures

Mr. Cooper Group Acquisition Home Point Capital, Inc. for $324M

Home Point Capital, Inc. has financed its growth through senior debt and has run into a $500 million cashflow deficit, putting it in default of its debt obligations. As part of its purchase, Mr. Cooper has pledged to pay $500 million in outstanding Home Point 5% Senior Secured Notes coming due in February 2026.

“Home Point has amassed an impressive servicing portfolio, consisting of conventional loans to borrowers with high FICO scores, low coupons, and strong equity cushions. We look forward to welcoming these customers to Mr. Cooper and providing them with a high-quality, personalized, and friction-free experience.” See Article.

Mr. Cooper Acquisition of Community Loan Servicing

Mr. Cooper recently acquired the servicing rights to 140,000 residential mortgage loans from Community Loan Servicing (CLS). As part of the transaction, Mr. Cooper absorbed about 500 former CLS employees to be part of its loan servicing team. See Article.

Mr. Cooper Acquisition of Pacific Union Financial, LLC

Cooper Group Inc. (NASDAQ: COOP) announced that it has closed on the acquisition of Pacific Union Financial, LLC, a full-service mortgage company. As of Feb. 5, 2019, Pacific Union customers and team members are part of Mr. Cooper, the nation’s largest non-bank mortgage servicer and a leading mortgage lender.

Through this transaction, Mr. Cooper acquired the servicing rights to 120,000 residential mortgage loans. Mr. Cooper benefited from a large expansion of its origination business as a result of the merger. See Press Release.

Mortgage Servicer Abuses, Fines & Penalties

$90 Million Settlement for Unfair & Deceptive Practices & Failing to Honor Modifications

Mr. Cooper Hurricane Irma Mortgage Abuse Settlement (Florida, 2018)

Florida Attorney General Pam Bondi has announced that a settlement was reached with Nationstar Mortgage, doing business as Mr. Cooper, that “resolves allegations regarding Mr. Cooper’s servicing misconduct in the aftermath of Hurricane Irma.” See Article.

Mr. Cooper misled homeowners about disaster forbearance plans stemming from Hurricane Irma. Specifically, Mr. Cooper told homeowners they could enter forbearance for 3-6 months to recover from the financial impact of Hurricane Irma, and that payments would be added to the back of their loan in a modification-styled workout. Instead, the payments became due in a lump sum at the end of the three-to-six-month period. As a result, many Floridians unknowingly became delinquent on mortgages and faced demands for hefty payments. The ensuing defaults resulted in the accumulation of various fees and costs, as well as placing these homeowners in default.

Among other relief, Mr. Cooper agreed to pay $350 to each affected homeowner to cover the added costs.