Consumer complaint received 2019-06-17
Company: Mr. Cooper Group Inc.
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I, XXXX XXXX am making complaint against Mr. Cooper Home Mortgages ( formerly Nationstar Mortgage ) located at XXXX XXXX XXXX, XXXX  XXXX XXXX, Texas XXXX. I believe their recent practices affect the public good and do not represent ethical lending practices. More specifically, my complaint makes claim against the Asset Manager XXXX XXXX who is officiating the short sale of XXXX & XXXX XXXX, the owners of XXXX XXXX XXXX, XXXX XXXX Georgia  XXXX ( Account # : XXXX ). 
My complaint is in two parts. The first asserts that the asset managers recent actions were unethical as she unfairly required the homeowner to provide information that is not part of Mr. Coopers policy or simply the normal appraisal dispute process.

Secondly, that Mr. Cooper Home Mortgages is misusing the appraisal process to the detriment of  the public at large. Moreover, Ms. XXXX is purposely ignoring a condition defect that affects the material value of the property. Potential buyers can be damaged under caveat emptor as the bank is evaluating the property based on a hypothetical condition and has no intention to inform the public. 
Situation The XXXX  have a financial hardship that is requiring them to short sale their home. A " short sale '' is a workout option offered by all mortgage lenders. In these cases, a traditional sale can not be accomplished because the debt on the home is more than the home is worth. When a home has a defect this can cause an additional price decrease for condition. The XXXX followed Mr. Coopers short sale process of providing financial information to the bank about their hardship. They marketed their property, obtained an offer and their short sale negotiator by the name of XXXX XXXX submitted all documentation to Ms. XXXX. 
On XX/XX/XXXX, XXXX XXXX, submitted a 7-page broker price opinion report to Ms. XXXX. This report was written by XXXX XXXX, who holds an active Real Estate Broker license in Florida and Georgia. He received an appraisers license from the Florida Real Estate Appraisal Board in  XX/XX/XXXX. Since that time he has completed over 300 residential and commercial appraisals that were used in federally related transactions. The BPO report included the following ( See attached ) : 1. Photo addendum - a three-page photo addendum that illustrates amenities, condition and room types. 
2. Broker Price Opinion ( BPO ) - which analyzes the general and subject markets, rental analysis. This report analyzes the active listings on the market as well three comparable properties. The comparable listings in the report have been compared and adjusted for price. This allows an appraiser to contrast the differences between the subject and the comparables to justify a market value. 
3. Complete Property Narrative - is a second detailed report that further discusses the adjustments made. This report is key because it allows the agent to disclose information that can be a detriment to the public such as the foundation issues described above. 
Ms. XXXX sent an appraiser by the name of XXXX XXXX ( XXXX, XXXX ) to the home on XX/XX/XXXX. The home is 3 levels which includes a finished basement and over 2,400 square feet. The appraiser entered the property by supra electronic lock box which records entrance and exit time. The appraiser entered at XXXX and left at XXXX for a grand total of 12 minutes ( Coincidentally, the sunset in XXXX Georgia  at XXXX on that day ). Which is not enough time to properly inspect a home for an appraisal. Not to mention, detects such as the basement leaks during heavy rainstorms as it is not built to code. There is sub floor damage by the patio as well as sloping in the kitchen. Parts of the HVAC system were not operative. Ms. XXXX set the value higher than the brokers priced opinion. However, the appraisers opinion did not note the condition defect and no adjustments were made. 
On XX/XX/XXXX, the asset manager sent the following email to XXXX XXXX ( negotiator for the XXXX ) : I was out of the office XX/XX/XXXX ( you emailed me XX/XX/XXXX so has not been a week ; today is the 3rd business day, we do not work weekends ) and just got back ; I did set up the out of office in equator ; not sure why you didn't get it. For a value dispute must have a full appraisal. Once you have that you can send that over and will submit to our value dispute department. No guarantee will be approved and that the value will change. Emails are reviewed every 5 business days due to work load ; so if you need immediate attention please call in and if I am not available leave a message and will get back to you within 24 hours. XXXX XXXX. Make sure you leave the loan # XXXX when you leave a message. 
It is NOT, the policy of Mr. Cooper Mortgage to require an appraisal to challenge a valuation. This statement is nefarious in that the normal appraisal challenge process usually requires that the multiple listing service marketing sheets to be submitted. Lengthy, analysis ( as I have submitted ) is an anomaly. But I did it, due to the fact that there are foundation issues and deemed this important to notify the bank so they would be award of the true condition of their defaulting asset. 
My assertion is that the asset manage does not want to be made aware of the foundation issues. The home is slated for a foreclosure sale within 2 weeks of this letter. If she forces the owner into foreclosure due to these unorthodox practices, she will not want to make the bank liable for disclosing the foundation damage when the property becomes an REO. There were many banks including Fannie Mae that applied these practices back during the last real estate downturn. However, I though these practices had stopped!!!! 

XXXX XXXX, XXXX XXXX XXXX XXXX, Florida / Georgia XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX The XXXX XXXX CC : XXXX XXXX, US Department of State XXXX XXXX, Director of  Consumer Financial Protection Bureau XXXX XXXX, Chief Financial Officer Mr.Cooper

Company response to consumer: Closed with explanation