Product: Mortgage

I am requesting your evaluation of a matter that involves the potential loss of my home. As a matter of information and coordination, I have also been working with XXXX XXXX at the Michigan Department of Insurance and Financial Services on this matter. However, given the importance of this matter to my family, I am also referring this to the CFPB to ensure that all avenues have been explored in our effort to bring a satisfactory solution for all parties to our loan. 
In XX/XX/XXXX, my wife and I consummated two above-market rate mortgage loans with XXXX XXXX XXXX which were immediately sold to XXXX XXXX prior to making the first payment. The intent was to execute a 3-5 year debt reduction strategy and refinance at a market rate at the end of this period. However, the economic downturn in XX/XX/XXXX brought the collapse of home prices and in XX/XX/XXXX, my wife lost her job which result in our income being reduced by 35 %. For the period immediately subsequent to her losing employment up until XX/XX/XXXX, through reliance on our personal and retirement savings as well as selling our second car, we managed to keep our loans current while my wife attempted to find employment. However, starting in XX/XX/XXXX, still lacking a replacement for her job, we began to fall behind on our mortgage. At that point, we did precisely what would be standard protocol for this situation and contacted all of our creditors to make payment arrangements consistent with our available resources. With the exception of XXXX, we reached agreement with all the non-mortgage creditors and over the course of 8 years have paid off the principal balance ( totaling in excess of {$80000.00} ) for all but one for which we will make the final payment in XX/XX/XXXX. Additionally, during the last 36 months, we have reduced the 2nd mortgage by {$23000.00} and over the life of the loan to-date have reduced the 1st mortgage balance by {$26000.00}. XXXX, however, would not make any arrangements or efforts to bring the mortgage payments into alignment with our financial capabilities even to the extent of refusing to accept an application to refinance the loan even though at that point we had a good payment history. The only accommodations they made during this time was to allow for partial payments but still continued to assess late charges and charged us for accepting the payments over the phone. Also, during this period, they began rolling accrued interest to the end of the loan in an effort to bring us current. This process continued for the next six years during which we were diligent in making and honoring payment arrangements all the while continually inquiring about the possibility of a modification or refinance to end this craziness. However, they seemed quite content with keeping the late fee and interest accrual revenue machine chugging along. In XX/XX/XXXX, they charged-off the 2nd mortgage and sold it to XXXX XXXX XXXX. In XX/XX/XXXX,  XXXX sold our loan to XXXX XXXX and included with the sale of this mortgage was accrued interest in the amount of {$22000.00} and late charges in the amount of {$2700.00}. Although we continued to struggle, lacking any other option ( that we were aware of ), we continued slogging along in an effort to protect our family home of 25 years. In XX/XX/XXXX, our loan was sold again to XXXX XXXX XXXX along with the huge accrued interest and late fee balance. 
Also occurring during XX/XX/XXXX, our 25 year old furnace failed and the {$3400.00} it cost us to replace it put us once again in the position of being behind on our mortgage. In conversations with Rushmore Loan Management Services ( servicing the loan on behalf of XXXX XXXX XXXX ), they advised us to submit a loan modification application which we did so on XX/XX/XXXX via fax. On XX/XX/XXXX, having not heard anything regarding our modification request, we contacted Rushmore and were informed that our application had been denied on XX/XX/XXXX because the lender does not evaluate or grant loan mitigation requests unless the loan is at least 60 days past due. When we inquired about a denial notice that should have been provided, we were advised we had been sent one on that date. We advised we had not received it and we received an overnight package on XX/XX/XXXX with this notice. Similar to what we were told verbally, the denial reason was The Owner of your loan does not offer a loan modification based on the level of delinquency of your account. We were counseled to resubmit some income documentation to re-initiate the modification review process and escrow our payments until the status of the modification process was finalized. 
On XX/XX/XXXX, I received my response regarding our request for a loan modification. Regrettably, they denied this request although I am requesting clarification of the reasons for this denial as the notice listed a number of potential reasons but it is unclear which apply to me. I have included a copy for your reference. 
In the notice provided, Rushmore indicated they obtained a Broker Price Opinion which estimated the value for our property at {$190000.00}. Based upon this value, in an effort to save our home of 25 years, I have received a commitment from my current employer ( see attached commitment letter ) for a mortgage loan in the amount of {$190000.00} at a rate of interest ( a 7/1 ARM with an initial rate of 2.4 % ) more consistent with the market. The resulting payment will put our housing debt ratio well within industry guidelines with the total debt-to-income ratio also well within guidelines reflecting our diligent efforts to reduce our outstanding debts. We have proposed to Rushmore a settlement amount of {$190000.00} ( and included a copy of the commitment letter ) which would entirely liquidate the outstanding principal balance while leaving unpaid $ 17,000+ in deferred interest and $ 2.700+ in unpaid late charges. ( see attached loan statement ) The vast majority of these charges were accrued during the period the loan was owned and serviced by XXXX and prior to the subsequent sale of this loan to XXXX and XXXX XXXX XXXX XXXX XXXX XXXX. 
During the entire period subsequent to origination of this loan by XXXX, we have been treated very poorly by all owners of this loan. All have been unwilling to work with us and the game plan has seemed to be to keep our credit damaged to eliminate our ability to refinance in order to protect the high rate of interest and to keep generating interest accrual/late fee income. I have long felt that XXXXs actions were inconsistent with the UDAAP and perhaps even the ECOA but we were reluctant to pursue a complaint with the CFPB. Our concern was that if a complaint was unsuccessful, we might be subjected to more aggressive collection actions. What I did not know was that our loan was sold 60 days before XXXX entered into a settlement agreement with the DOJ, CFPB and all the states attorney generals covering UDAAP violations of the exact nature we were subjected to. I did not learn about this until the expiration of the settlement process and can not fathom why we would have been excluded other than perhaps deception on XXXXs part. In spite of this, based on our remediation efforts and the increase in our home value as the economy improved, we are in the best position yet to resolve this matter once and for all. My concern is that the large balance of accrued interest/late fees will impede our ability to reach an agreeable settlement. When added to the principal balance outstanding, the total payoff would be far in excess of the market value they have identified and if they stand resolute in requiring payment of them, it would likely preclude our ability to execute a refinance. I understand these accruals/fees are perfectly legal ; however, I believe that XXXX employed unfair and abusive practices in accumulating them. Moreover, given my knowledge of the pricing of the sale of mortgage loans ( particular delinquent or troubled loans ), and the fact that XXXX was anxious to liquidate all their US mortgage loans, I am certain the price established with XXXX involved a discount to the principal value and did not include these fees which would be considered an additional income opportunity for XXXX. Subsequently, in the sale of this loan by XXXX to XXXX XXXX, I am certain the principal value was discounted even further given the delinquency that existed at the time of sale and also did not include the accruals/fees. In short, I am certain the {$190000.00} offer significantly exceeds the value XXXX XXXX holds on the books for our loan and would represent a very nice return for the 4 months they have held the loan. On top of the other indignities we have experienced, I would regret losing my home because these charges represent an insurmountable hurdle to reaching an settlement agreement In my opinion, our offer would likely exceed any net amount they could expect from foreclosure when you subtract the time and costs they would incur to acquire the property, manage it until sale as well as the corresponding sales fees and commissions. 
In line with the following statement made in conjunction with the DOJ settlement agreement imposed upon XXXX, we ask that you evaluate these interest accrual/late charges as we believe they are the result of unfair and abusive practices. 
Mortgage servicers have a responsibility to help struggling borrowers remain in their home, not to push them into foreclosure, said General Counsel XXXX XXXX of HUD. This agreement is another example of how multiple agencies in the federal government and state attorneys general across the country are working to make sure the mortgage industry treats consumers fairly. 
In conclusion, it has been a long, arduous road back for us but I firmly believe that a reasonable solution can be worked out that would satisfy all parties to this transaction. Over the last 10 years, we have done everything we believed possible to position us to emerge from this situation. However, our single point of contact at Rushmore has not been responsive despite repeated calls and voicemails and given our prior experience with these lenders, we want to make sure all viable options are exhausted in our efforts to keep our home. We are not unreasonable in our expectations and are willing to do everything we can within our means to structure an agreement to retain our home. The bank that I work for recognizes the work that I have done getting here as well as the impact on our ability to service our debts given a rate reduction from 8.5 % to 2.4 % and will support a refinance to the extent that they can. However, they must operate within LTV considerations and if XXXX XXXX insists on a total payout of these fees ( even though they would not likely capture them if they had to acquire and sell the property themselves ), it would likely push us into foreclosure. 
Because we have gone from the potential of executing a modification to our only option being the sale of our home on a short sale, for which Rushmore Loan Management Services is demanding we provide them with a listing agreement within 14 days of their letter dated XX/XX/XXXX ( which we did not receive until XX/XX/XXXX ), TIME IS OF THE ESSENCE! Given these time constraints, we are submitting this matter to you contemporaneously with the submission of our settlement proposal to Rushmore in the event these fees become an impediment to reaching a settlement agreement. 
We look forward to your prompt review of this matter and any assistance in ensuring a resolution that is equitable to all parties. We look forward to rejoining the mainstream credit community as well as preparing for our retirement and enjoying life once again. 
Enclosures Rushmore Loan Modification Denial Package XXXX XXXX loan commitment letter Rushmore loan statement Rushmore settlement proposal communication Copy of XX/XX/XXXX appraisal report ( referenced in the settlement proposal )