Law Office of Camron Hoorfar, PC

Today 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 Bureau’s action is part of a coordinated effort between the Bureau, a multistate group of state attorneys general, and state bank regulators.  The Bureau alleges that Nationstar violated multiple Federal consumer financial laws, causing substantial harm to the borrowers whose mortgage loans it serviced, including distressed homeowners.  Nationstar is one of the nation’s largest mortgage servicers and the largest non-bank mortgage servicer in the United States.  The proposed judgment and order, if entered by the court, would require Nationstar to pay approximately $73 million in redress to more than 40,000 harmed borrowers.  It would also require 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 have also settled with Nationstar today and their settlements are reflected in separate actions, concurrently filed in the United States District Court for the District of Columbia.

“Mortgage servicers are entrusted with handling significant financial transactions for millions of Americans, including struggling homeowners.  Nationstar 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,” said CFPB Director Kathleen L. Kraninger.  “Today’s action is the culmination of a multi-year effort working with our state partners to investigate Nationstar’s failings, which resulted in substantial consumer harm.  We had a strong partnership with our state counterparts in this case and I thank them for all their support in this case.”

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

The world’s largest movie-theater company may run out of cash by year’s end if it doesn’t raise additional funds or get more people back to theaters following pandemic shutdowns that have disrupted businesses dependent on consumers gathering in public spaces, the Wall Street Journal reported. AMC Entertainment Holdings Inc. said yesterday that it has reopened 83 percent of its U.S. theaters, but that attendance is down about 85 percent at those theaters from the year before. At the company’s current cash-burn rate, its reserves would be depleted by the end of this year or early next year, Kansas-based AMC said. In related news, AMC Entertainment Holdings Inc. Chief Executive Adam Aron talked with WSJ Pro Bankruptcy about the impact of the coronavirus pandemic on the movie-theater industry and on his company, the sector’s largest. One of the main issues, he said, is that New York state and certain major metropolitan areas in California such as Los Angeles haven’t allowed cinemas to reopen, prompting studios to delay major releases. A spokeswoman for New York Gov. Andrew Cuomo, a Democrat, said yesterday that the state is concerned about movie theaters because they involve large groups spending extended time together indoors, as well as lobby congestion when customers arrive and leave. “Movie studios cannot afford to open movies in the U.S. if they cannot also open them in New York,” Aron said. “As a result of that, the entire movie industry is waiting for New York to bless the reopening of theaters, and understandably so.” AMC yesterday warned that it could run out of cash by year’s end if it doesn’t raise additional funds or get more people back to theaters. “We’ve been going through $100 million a month, waiting for the movie industry to recover, which can only happen when New York reopens,” Aron said. 

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

A Brentwood, Pa., restaurant ordered to close for ignoring COVID-19 masking requirements has filed for chapter 11 bankruptcy, the Pittsburgh Post-Gazette reported. The Crack’d Egg filed the petition on Friday in U.S. Bankruptcy Court in Pittsburgh, and it will continue to operate while the owners reorganize. The restaurant, owned by Kimberly Waigand, made headlines last month after the Allegheny County Health Department ordered it to close for flouting COVID-19 masking rules. In response, the restaurant filed a federal civil rights lawsuit against the Health Department. The shutdown order and the lawsuit have been stayed while the bankruptcy case proceeds. Attorneys said the restaurant’s financial woes are largely due to a loss in revenue following statewide COVID-19 mitigation rules that reduced maximum restaurant capacity to 25 percent. According to the restaurant’s bankruptcy filing, it owes nearly $445,000 in unsecured debt to its creditors. The largest amount, $350,000, comes from Waigand’s husband, Donald. The money for the investment came from a settlement Waigand received after he was in an accident, Cooney said. The restaurant has been under scrutiny since Allegheny County sought its closure after inspectors repeatedly saw employees without face masks, a health violation under the COVID-19 guidelines.

Planning to file for bankruptcy but need help? We can help. Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment. 

Investors sued Boardriders Inc., the company behind the Quiksilver and Billabong brands, over a $431 million rescue financing package they said elevated the interests of a select group of lenders. Intermediate Capital Group PLC, York Capital Management and other lenders filed a lawsuit in the Supreme Court of New York, challenging an August financing deal that supplied the apparel company with $110 million in fresh capital from a group of lenders. In return for the infusion, Boardriders gave those parties top-ranking collateral rights on $321 million of loans they already held, pushing other lenders down in the payment line, according to the complaint. The lenders that filed the suit are seeking a judgment undoing the transaction.

Being sued? Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

Mallinckrodt Plc became the third major opioid maker to go bankrupt after allegedly profiting by fueling the U.S. opioid epidemic. The drug company said that it filed for chapter 11 protection in Delaware after getting creditors and claimants to agree on a restructuring plan that hands ownership to bondholders, wipes out shareholders and sets aside $1.6 billion to resolve all opioid litigation. The filing also will help resolve a U.S. government probe into whether the company defrauded Medicaid by overcharging for certain drugs. The move comes as Mallinckrodt was readying for two trials over accusations it illegally marketed opioids and failed to properly oversee large shipments of the highly addictive drugs, which have been tied to an epidemic of abuse that killed thousands of Americans. A judge is likely to halt all litigation while the bankruptcy plan makes its way through the court process. The agreement includes certain debt holders, state attorneys general and lawyers for municipalities that sued to recoup billions in tax dollars spent on battling opioid addictions. Mallinckrodt will set up a trust to oversee payments from the $1.6 billion fund to claimants, and give them warrants to buy a stake in the reorganized company that could total nearly 20 percent, according to a statement.

Contemplating bankruptcy? Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

Home has never been more important. Our homes have always provided shelter, but in the midst of the COVID pandemic, home has become so much more. Home is where we receive our health care, educate our children, conduct business, and connect virtually for worship services, community meetings, and social gatherings. 

The economic impact of the pandemic has left many Kansans unemployed or underemployed, and uncertain how they will pay rent. While moratoriums provide temporary protection from eviction, rent continues to accrue each month, leaving tenants unsure how they will pay the past due amounts, and leaving landlords without monthly income to pay bills and manage maintenance and upkeep.  

The KEPP program is funded through the CARES Act. Program funds are limited, and applications will be processed in the order received. Tenants and landlords should apply as soon as possible to increase your likelihood of receiving assistance.  

Are you affected financially due to the coronavirus? We can assist you. Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

U.S. government-supported passenger railroad Amtrak said that without a new bailout it could be forced to cut more spending and train services, which could lead to the loss of another 2,400 jobs. In November, Amtrak told Congress it needs up to $4.9 billion in government funding for the current budget year. The railroad, which already cut 2,000 jobs, said that without more support from Congress, reduced spending would result in the loss of another 775 jobs, and further reductions in train service by state partners would likely result in an additional 1,625 job losses. Without the new funding, Amtrak chief executive Bill Flynn said, “We will be unable to avoid more drastic impacts that could have long lasting effects on our Northeast Corridor infrastructure and the national rail system.” 

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.