Consumer complaint received 2021-06-04 00:00:00
Product: Mortgage — Reverse mortgage
Issue: Closing on a mortgage — 
Company: Mr. Cooper Group Inc.
State: FL

Complaint narrative:
Estate of Father ( deceased as of XX/XX/XXXX Address : XXXX XXXX XXXX, XXXX XXXX, FL XXXX Birthdate : XXXX, SSN # XXXX FHA Case # XXXX FHA Case # XXXX XXXX dated XX/XX/XXXX Champion Mortgage Loan # XXXX I am the XXXX  & Heir of my father 's Estate, Personal Representative w/ Letters of Administration thru the Probate Court after my father 's death. 

FLORIDA Office of Financial Regulation Complaint # XXXX. 

Florida DBPR Complaint # XXXX / FOIA Request # XXXX Before I get started I was hoping that the CFPB could work in conjunction w/ the Florida Attorney General 's office in investigating this complaint. There is an ongoing investigation now and I feel CFPB working w/ them could help resolve this and help you come to a determination faster and more efficiently. FL Attorney General received my complaint on XX/XX/XXXX. 

Father had a Reverse Mortgage originating thru XXXX XXXX back in XXXX of XXXX in the amount of {$300000.00} w/ a HECM loan. I, the XXXX  was and did attempt to purchase the home of my father thru a Short Sale w/ the Reverse Mortgage Company called : Champion Mortgage / Nation 's Star ( Parent Company ). I purchased the home thru Short Sale for {$130000.00} paying cash to Champion Mortgage/ Nation 's Star to satisfy the amount owed within the Reverse Mortgage w/ a loan that was severely " Underwater ''. Champion Mortgage hired three ( 3 ) separate appraisals on the house within eleven months of one and other and hired the same appraiser each time. 
1st Appraisal ) Drive By XXXX  XX/XX/XXXX Market Value $ XXXX by XXXX XXXX of XXXX XXXX. 
2nd Appraisal ) Walk thru Appraisal XX/XX/XXXX Market Value $ XXXX by XXXX XXXX of XXXX XXXX, amended down to $ XXXX in XX/XX/XXXX 3rd Appraisal ) Last & Final Appraisal XX/XX/XXXX Market Value $ XXXX by XXXX XXXX of XXXX XXXX, but actually working for her mother XXXX XXXX of XXXX XXXX. 
4th Appraisal ) Homeowner hired his own Independent Third Party HUD Approved appraiser on XX/XX/XXXX Market Value $ XXXX thru Appraisal Services XXXX XXXX. 

I anticipated a bad last & final appraisal from Champion Mortgage because of the Over Inflated values of the first two appraisals. I appealed to HUD Homeowner ( XXXX ) thru their assigned Station Chief Ms. XXXX XXXX XXXX. HUD HOC was supposed to review my appraisal and the Last & Final Appraisal of Champion Mortgage & XXXX XXXX. They were to compare the two appraisals and come up w/ a median average and or what was the most accurate value. HUD HOC took six weeks to evaluate these appraisals and there final decision threw away both appraisals and disqualified them. HUD HOC reverted back to the XX/XX/XXXX appraisal of XXXX XXXX and HUD HOC gave the Market Value of $ XXXX as their determination. Champion Mortgage ignored this finding entirely stating that the XXXX XXXX Appraisal was expired and could not be used. Champion Mortgage proceeded to use XXXX XXXX 's Last & Final Appraisal of $ XXXX. Champion Mortgage started foreclosure on the home XX/XX/XXXX and would not wait for the HUD HOC value determination knowing full well I wanted to pay cash for the home thru Short Sale. I purchased the home for {$130000.00} which is .95 % of XXXX. I immediately filed a complaint to the Florida Office of Professional Regulation and the FL Real Estate Appraisal Board came back with a Final Order determination w/ Errors & Omissions and Negligence against XXXX XXXX w/ Errors from A thru Q on an addendum. I notified Champion Mortgage of this and provided them a copy of the entire 14 page report and Champion 's reaction was they had : No Comment. I then hired a Litigation Attorney by the name of XXXX XXXX out of XXXX last summer in XXXX of XXXX. I am in the process of suing Champion Mortgage & both appraisers from XXXX Appraisers. I filed a separate complaint w/ HUD Office of Inspector General w/ the heading of Mis-Management/ Appraisal Fraud on XX/XX/XXXX and they reviewed this complaint and forwarded it back to the HUD HOC XXXX division where it's been since XX/XX/XXXX. I have not heard anything from HUD HOC or the Station Chief XXXX XXXX XXXX yet and have no idea if they gave an updated determination and or rejected or replied in anyway. I am furious that a desk / field review wasn't done by Champion Mortgage and a completely NEW appraisal should of been ordered and done by the ARMS LENGTH process thru an Appraisal Management Company where USPAP Rules & Standards were met and complied with. I have not been given that common decency or consideration. In addition I've also filed a complaint thru the Florida Attorney General 's Office as of XX/XX/XXXX that is being investigated. I supplied the Florida Office of Financial Regulation w/ over 600 pages of documents and they investigated and reviewed all my documents and came back stating this was a CIVIL Matter and they could not make a Final Order. I also have provided over 500 pages of documents to the Florida Office of Professional Regulation that they used for their Final Order. I have seven ( 7 ) different appraisals since XX/XX/XXXXwhen the original Reverse Mortgage was taken out up until today. No Matter which one of seven ( 7 ) different appraisals chosen after including the FEMA 50 % Rule and considering " Depreciation " every single appraisal would come out the same and there is No Structural Value to the home, and the only value there is for land at $ XXXX. The FEMA 50 % Rule states that any home w/ major restoration and or water issues needs to take their Market Value of the Home and divide it by 2. Whatever the number comes out to is the cut off in the amount of restoration allowed. If the house can't be raised up off the ground to 12.1 ' feet then the home needs to be raised and or bulldozed. My home is at about 8.2 ' elevation and can't be raised due to excess cost. The FEMA 50 % rule was ignored by all the appraisers and Depreciation was never given consideration. I have a 24 page Mold Report and an estimate for Mold Mitigation that was ignored as was the issue of whether or not there is " LEAD PAINT " in the home as there is peeling paint in various rooms and the home was built in XXXX. All of this is in the Final Order from FREAB and to add insult to injury the appraisers ignored other Environmental factors which included the construction of a 69.7 acre RV Park that will remove nine holes from the Plantation Golf Course w/ my home adjoining this property w/ 322 Slabs being constructed w/ transient renters coming and going. This was never mentioned in the report either. I provided the Appraisers three ( 3 ) estimates for necessary repair for all each category of restoration. This includes for : Exterior Metal Roof Replacement at $ XXXX w/ various ( 40 ) different leaks throughout the house and Interior Ceiling damage w/ a 4 ' thick tongue & groove Yellow Pine ceiling estimates of $ XXXX as well HVAC estimates $ XXXX & XXXX XXXX XXXX Awning window estimates at $ XXXX. Mold Mitigation estimate is approximately $ XXXX and Cast Iron Pipe estimates came to $ XXXX as they are in the foundation of slab and needing replacement. I provided the appraiser a XXXX plumbing estimate w/ photographs of the interior of the pipes and the home is marked off throughout w/ special tape showing location of pipes in walls & floor. I also have two additional Plumbing Estimates as well. The Sewer Lines in the home recently had a hydrostatic test done and the pipes " FAILED " the test and there is major leaks in the pipes that can cause major foundation issues. 
I can provide any all documents that you request immediately as they are all saved by attachment. I would love to provide any and all documents proving my case with No Assumptions of any kind by me the homeowner. 
To conclude this complaint it is important to understand that from the beginning XX/XX/XXXX thru XXXX XXXX " Overvaluing their Market Value by $ XXXX. This was done to show a low risk loan w/ a consumer that had very little income at {$900.00} a month. XXXX XXXX was caught with Millions of Over Inflated Reverse Mortgages and they sold their Reverse Mortgage to Champion Mortgage around XXXX & XXXX. In the end Champion Mortgage " Over Valued " the home because it was severely underwater and need at least {$320.00} to $ XXXX in necessary repairs. It was ugly from start to finish with unprofessional conduct and from the start Champion Mortgage was combative, disagreeable and won't even talk to me in XXXX of XXXX thru XXXX of XXXX. I filed a complaint w/ the Florida Attorney General 's office because of their conduct. That helped tame Champion Mortgage temporarily ... to at least force them to talk and recognize me. XXXX XXXX XXXX of HUD helped with two extensions of 90 days as i awaited Probate to end and Champion Mortgage tried to deny me at every turn what was needed. 
XXXX XXXX XXXX Department Flood Analyst verifying that the FEMA 50 % Rule does apply and I'm including her email to me after her studying the Elevation Certificate that I included in attached files. 

From : XXXX XXXX XXXX XXXX Date : Tue, XX/XX/XXXX at XXXX PM Subject : RE : [ EXTERNAL ] Fwd : ELEVATION CERT This document is exactly what is was referring to. Thank you for sending it. The findings from the elevation certificate indicate the structure is non- compliant with FEMA elevation requirements according to the current FIRM map XX/XX/XXXX. Your finished floor does not meet the required base flood elevation 8 NAVD. The finished floor elevation as converted from NGVD datum which was utilized to complete the supplied elevation certificate to the current NAVD datum is XXXX NAVD. 

The cost of any repairs/renovations to the structure would be assessed under the substantial improvement regulation ( FEMA P-758 ). The appraisal you supplied indicates the market value minus depreciation is {$60000.00}. FEMA will allow 50 % of that figure equaling {$30000.00} as the allowable cost amount of any/all improvements to the structure.

Should the proposed repairs/renovations exceed the allowable amount, the structure would need to be brought into compliance with FEMA regulations which would entail elevating the structure to meet the base flood elevation of 8 NAVD + 1 of freeboard, Florida Building Code requirement, among other requirements. 

I have attached the documents utilized in making the above described determination Best regards, XXXX XXXX, CFM Flood Management Specialist XXXX XXXX Building Division Growth Management XXXX XXXX

Company response to consumer: Closed with explanation