Product: Mortgage

Dear CFPB Representative, I am writing to formally submit a complaint regarding the mismanagement of my FHA mortgage loan by XXXX XXXX XXXXXXXX XXXX XXXX  Since the transfer of my loan in XXXX, I have encountered repeated and significant issues with how my mortgage payments have been handled. These issues have caused undue stress, financial confusion, and unwarranted negative impacts on my credit report. I am also concerned about how these practices may be affecting other homeowners, including senior citizens and first-time homebuyers, in the state of Maryland. 

The primary issue I have faced is XXXXXXXX XXXX  repeated misapplication of my monthly mortgage payments. Despite my payments being made on time, I have been told by customer service representatives that I must call each month to direct how my payments should be applied. This contradicts my understanding of my loan terms. As a result, my payments have frequently been placed into a suspense account or applied directly to the principal rather than covering the monthly payment due. Consequently, my account has been incorrectly marked as late, leading to unjustified late fees and negative reporting to credit bureaus. 

Additionally, the following issues have exacerbated my concerns : -Numerous instances where customer service representatives have been unable or unwilling to properly resolve my issues. 
-Inconsistent information provided by XXXX representatives regarding their payment processing policies. 
-Being informed that my payments were late despite having paid on time, which led to negative credit reporting. 
-Supervisors hanging up on me or refusing to escalate the issue appropriately. 
-Changes in XXXX payment processing system that have caused confusion and incorrect application of funds. 
-Unexpected transfer of my loan to another servicer, XXXX XXXX XXXX without clear information on how my prior payments were accounted for. 

Below is a detailed timeline of my interactions with XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX : Called XXXX ; on hold for 15 minutes, could not obtain assistance. 
XX/XX/XXXX : Called XXXX  ; recording stated the office was closed. 
XX/XX/XXXX : Attempted to reach customer service multiple times. Received a recording stating customer service was closed. 
XX/XX/XXXX : Account incorrectly listed as three months in arrears despite payments being made. 
XX/XX/XXXX : Spoke with XXXX, who confirmed an online internal glitch incorrectly accelerated my loans due dates. 

XXXX : XX/XX/XXXX : Spoke with XXXX regarding incorrect application of payments to principal which XXXX blamed on biweekly payments being submitted. An internal request was submitted to correct this and XXXX removed the late fee. 
XX/XX/XXXX : Adjusted payment delivery based on XXXX guidance. 

XXXX : XX/XX/XXXX : Spoke with XXXX, who confirmed my account was a month ahead, but payments continued to be misapplied. 
XX/XX/XXXX : Spoke with XXXX at customer service. She stated that payments were placed in a suspense account and late fees assessed due to XXXX 's automated processing issues. She stated that I have to call every month to tell them how to apply the mortgage payments. She informed me that they were receiving my second payment after the XXXX due to XXXX 's internal processing practices. 
XX/XX/XXXX : Adjusted payments to ensure all portions arrived before the XXXX of each month for the payment to be applied by the first. 

XXXX : XX/XX/XXXX : Received a late payment notice despite being XXXX months ahead. Spoke with a representative who cited an issue with their automated processing system. 
XX/XX/XXXX : Spoke with XXXX, who hung up on me. Called back and spoke with XXXX, who investigated and found that incorrect processing by a third party machine caused the issue. Spoke with XXXX in Escrow payments regarding the shortage amount, she confirmed that payment submitted by XXXX XX/XX/XXXX would allow the monthly payment to remain at the current rate. Instructed me to set up monthly payments to alleviate the internal suspense account practice. I adjusted payments accordingly and submitted the separate escrow payment. 
XX/XX/XXXX : Received another late notice due to continued suspense account practices. 
XX/XX/XXXX : Spoke to XXXX and requested a supervisor. Spoke with XXXX, who reviewed the account and then hung up. Called back and spoke with XXXX, who corrected errors and cited ongoing suspense account misapplications. Escalated to XXXX ( supervisor ), who reversed payments for XXXX XXXX to bring the account current again. 

XXXX : XX/XX/XXXX : Spoke with XXXX at customer service, then transferred to supervisor XXXX. XXXX confirmed continued misapplication of payments and stated no permanent resolution was available. XXXX told me that I could not pay my mortgage earlier or have my payment be months ahead. I requested to have the account notated and was told that they could not ; I have to call monthly to instruct them on how to apply the payments. XXXX informed me the escrow shortage was {$540.00} and payment of the shortage would allow my monthly payments to remain the same. I was instructed to label the check memo section with " Escrow '' to allow the internal machine to properly apply the shortage payment to allow my payments to remain the same. I followed the provided instructions when I sent the payment from my bank XXXX XX/XX/XXXX to XXXX for the shortage. 
XX/XX/XXXX : I submitted a complaint to the Better Business Bureau. 
XX/XX/XXXX : Received a response from XXXX citing their suspense account policy. 
XX/XX/XXXX : Unexpectedly received notice that my loan was being transferred to XXXX XXXX, raising concerns about the proper application of my {$15000.00} in payments. Additionally, the transfer appears to be XXXX 's retaliation to my consumer complaint filed. 

Given these longstanding and unresolved issues, I am seeking assistance from the CFPB to : XXXX ) Investigate XXXXXXXX XXXX payment processing practices and determine whether they are in compliance with federal loan servicing requirements. 
XXXX ) Ensure that my mortgage account is properly reconciled, with all payments correctly applied and any erroneous late fees or negative credit reporting removed. 
XXXX ) Provide oversight to prevent other homeowners from facing similar issues with XXXX XXXX  and its loan servicing practices. 

I appreciate your time and attention to this matter. Please let me know the next steps required to formally pursue a resolution through the CFPBs complaint process. I look forward to your response and a fair resolution to this matter.