Product: Mortgage

Dear CFPB, I am writing to file a formal complaint against my mortgage servicer, NewRez LLC, regarding their handling of my mortgage account. Their actions have caused significant confusion, financial stress, and may represent violations of federal regulations. Below are the details of my complaint : 1. Misleading Payment Information During XXXX, when I logged into the NewRez online portal to review my mortgage account, the website indicated that I had a XXXX balance for that month. During the same month, I received an overage check from my escrow account and thought that was why there was a XXXX balance. Believing no payment was due, I did not submit a payment. However, I later discovered that I was still required to make a payment for that period. In the following month, when I logged in to make the missed payment, I encountered multiple misleading warnings on the website that discouraged me from making a payment. Specifically, the system indicated that I had already scheduled a payment and did not need to proceed further, even though I owed money. 

Attached are screenshots of the misleading messages I received. 

2. Escrow Account Discrepancy As mentioned previously, during XXXX I received a check in the mail for an escrow overage from NewRez. However, upon logging into my account this month, I discovered that my escrow account was overdrawn by over {$2000.00}. This discrepancy raises concerns about NewRezs management of escrow funds, particularly in light of federal laws that require servicers to handle escrow balances properly and conduct accurate escrow analyses. 

Despite receiving an overage check, I now face an unexpected and unexplained deficit in my escrow account, which has not been properly addressed by NewRez. This has created a financial hardship for me and my family. 

3. Premature Pre-Foreclosure Notice I received a " Notice of Pre-Foreclosure Options '' via certified mail on XX/XX/year>. I find this action highly aggressive and unusual, as pre-foreclosure proceedings are typically not initiated until 90 days of non-payment. I believe NewRez is pressuring me unnecessarily, especially given that I have already caught up on my payments ( with the exception of a late fee, which I am disputing due to the websites misleading payment information ). 

4. Potential Bad Faith and Predatory Practices The main point of this complaint : I am highly concerned that NewRezs actionsspecifically the misleading payment information and the overly aggressive pre-foreclosure stepsmay indicate bad faith practices aimed at generating late fees or potentially forcing borrowers into foreclosure prematurely. Given the current housing market where many properties are worth more than their mortgage balances, NewRez has a financial incentive to foreclose on homes in order to profit from the increased property values. 

Steps Taken So Far : On XX/XX/year>, I submitted a complaint directly to NewRez via their online portal, but I have not received a satisfactory response. I have made the required payments to bring my account current, except for the late fee, which I believe is unjustified given the misleading information provided by their online portal. 

Thank you for your attention to this matter. Please feel free to contact me if you require any additional information. 

Sincerely, XXXX XXXX