Nationstar Rebrands as Mr. Cooper, but Can a Leopard Change its Spots?

Posted on September 25, 2017 Posted in Florida Law News by Roy Oppenheim

You may have noticed that Nationstar is no more. After several years of transitioning, Nationstar has officially renamed itself “Mr. Cooper.” Why the new name? According to CEO Jay Bray, it’s all part of a “cultural shift” to improve the experience for customers, as Bray’s mission is to be the leader in service.

Time to Rebrand

The former Nationstar has quite a history. It was among the most complained-about companies, according to the Consumer Financial Protection Bureau’s reports on consumer complaints. Nationstar was also previously hit by the Bureau with the largest civil penalty ever imposed, in the amount of $1.75 million, for Home Mortgage Disclosure Act violations.

Due to such negative publicity, presumably, the Nationstar team realized that a total rebrand would create a new identity for the mortgage servicer. The “Mr. Cooper” brand hopes to create an impactful relationship with its customers, “upgrading [the] customers’ experience and challenging the standard for customer service in the mortgage industry.”

Mr. Cooper has already transformed its name, website, and mobile app; and aims to completely transform its identity to “personify” its relationship with customers. Mr. Cooper moved its customer service operations back to the United States and also released a Home Rewards credit card that provides customers with 1% cash back on purchases where the rewards are applied to the borrower’s mortgage principal.

What This All Means

The Nationstar-Mr. Cooper transformation leaves a few questions to be answered. Will Mr. Cooper erase Nationstar’s negative past? Will other mortgage servicers, hoping to shed their culpability in the foreclosure crisis, also rebrand? Will “Ms. Doe” be next? Even if rebrands happen, our question at Oppenheim Law is, can a leopard change its spots?

From the trenches,

Roy Oppenheim

Bank of America: Illegal Foreclosure and Harassment Lead to $6M Settlement

Posted on September 19, 2017 Posted in Foreclosure Fraud by Roy Oppenheim

The following is not a reality show; rather, it is a true story that highlights the worst of the financial crisis.

Erik and Renee Sundquist reached a settlement with Bank of America where the bank has agreed to pay them $6 million after eight grueling years of foreclosure. The Sundquist family endured a stress-induced heart attack and a suicide attempt, and a “long personal and legal nightmare that has impacted every facet of their and their sons’ lives,” according to court papers.

Being no stranger to fines, penalties, and settlements for wrongdoing, Bank of America has paid nearly $60 billion since the 2008 financial crisis for violations including tax evasion, money laundering, fraud, and misconduct.

When It Rains, It Pours

Events began to unfold in 2008 when the couple took out a mortgage made by Countrywide Financial, which was later acquired by Bank of America. The family sought a modification, at which time a Bank of America representative told them that they needed to miss three payments and default before their mortgage could be modified.

Despite knowing that this would damage their credit score, the couple proceeded with bank’s advice and defaulted. However, the bank rejected more than 20 modification requests, claiming that the applications were “stale”, incomplete, insufficient, and even “lost”. Despite the Sundquists’ subsequent bankruptcy filing, Bank of America proceeded with the planned foreclosure auction, violating the automatic stay.

Realizing it was in violation of the automatic stay, Bank of America reinstated the family as title holders without notifying them. When the family moved back in, they discovered their home had been vandalized, and that there was a $20,000 fine from their HOA for failing to keep up with the landscaping.

The end of a “state of battle-fatigued demoralization”

This entire ordeal is cited as the cause of Renee Sundquist’s heart attack and Erik’s attempted suicide, leading to what the judge described as a “state of battle-fatigued demoralization”. The judge awarded the couple $6 million in damages, and also awarded several legal organizations that helped fight the financial abuse an astounding $40 million in punitive damages.

The Sundquists’ legal nightmare is over. Unfortunately, the Sundquists had to pay the price for reprehensible and unlawful conduct that no one should ever have to endure.

From the trenches,

Roy Oppenheim

Oppenheim Law Update After Hurricane Irma

Posted on September 14, 2017 Posted in Florida Law News by Roy Oppenheim

Dear Friends and Colleagues,

On behalf of the Firm, we hope that you and your loved ones are safe and well following the catastrophic impact of Hurricane Irma. Fortunately, our office did not get the brunt of Hurricane Irma, but we know that many fared much worse than us. We cannot even begin to imagine what you must be going through. However, we are here to help.

Our Firm reopened this past Tuesday afternoon, and all our staff is now back, although a number of us including Ellen and myself do not yet have power restored.

Our Firm has served the South Florida community for the past 30 years, and we are here for you now. We are here to continue to assist you with your various legal needs and to do our part in rebuilding South Florida. I could go on and on about how my faith in humanity is always restored during these trying times, and I am confident that whatever hardship you are now facing, you will be stronger for it, too.

Should you have a moment, I have prepared a short video on the essential takeaways (long and short-term) from Hurricane Irma, and have included an interview from three years ago about the long-term impact of these kinds of catastrophic events on Florida’s real estate market.

Best Regards,
Roy Oppenheim

Hurricane Harvey: A Harsh Reality for Houston Sends a Dire Warning to the U.S.

Posted on August 30, 2017 Posted in Roy Oppenheim by Roy Oppenheim

Hurricane Harvey reaches record breaking flood damages in Houston

Hurricane Harvey: A Harsh Reality for Houston Sends a Dire Warning to the U.S.

With the upcoming Labor Day Weekend, when most people will be grilling and relaxing, it’s important to take notice of how lucky we all are and yet, at the same time, how many of us are in dire need.

Hurricane Harvey, still an active tropical storm, has left us with many heart-wrenching visuals as the country’s fourth largest city, Houston, enters the beginning stages of what many view as years of recovery. The storm is already projected to be the costliest natural disaster in U.S. history, with estimated costs of over $160 billion.

Harvey has also amassed over 50 inches of rain, which according to the National Weather service, broke the U.S. rainfall record for a tropical storm or hurricane. With flooding damage being the primary cause of destruction to Houston, another storm of sorts is brewing regarding the city and it’s 80% of residents that do not have flood insurance.

Flood Insurance

After evacuating their homes or even having to be rescued from the hurricane, Houston residents may also face consequences from being uninsured. Many will be faced with significantly high out-of-pocket expenses for any property damage resulting from Hurricane Harvey’s wrath. The lack of flood-insured properties is not exclusive to Houston as their 80% uninsured rate is roughly equal to national figures. It is estimated that flood damage alone will cost at least $35 billion, more than double what the National Flood Insurance Program covered for flood damage claims during Hurricane Katrina.

Providing Assistance for Relief Efforts

As part of our efforts to assist those affected, we at Oppenheim Law and Weston Title & Escrow are collecting non-perishable items to donate to the Hurricane Harvey relief effort. We are providing the donations to a relief effort organized by the Miami Dolphins who will send the items to Houston high schools currently serving as shelters for storm victims. There are so many ways to give and help. A list of different organizations may be found here.

We wish and pray for the health and safety of all those affected by the storm.

From the trenches,

Roy Oppenheim