Consumer complaint received 2021-02-03
Company: Mr. Cooper Group Inc.
State: NC
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Closing on a mortgage

Complaint:
Good morning, I have a major problem with a public record that needs to be corrected as a result of a refinance application mishandling by MrCooper. I started an FHA Streamline refinance loan application process with my existing mortgage loan servicer, MrCooper/Nationstar Mortgage, back in XX/XX/XXXX. We locked in a refinance lower interest rate for 2.75 % ; I was paying 4.25 % from original loan. 

We advanced to an initial closing out of state in XXXX, RI on XX/XX/XXXX, which MrCooper coordinated at a hotel with a local lawyer. The closing went through along with the wire transfer I made for the cash to close {$410.00}. A week passed and the closing was not finalized. The Mortgage loan processor XXXX XXXX informed me on XX/XX/XXXX that North Carolina government offices were taking longer than usual to process the Deed, supposedly because of Covid. 

Soon after that I was told by the loan processor, XXXX XXXX to go ahead and pay the XXXX mortgage while we wait ; also the overage amount would be refunded once loan funded. A few days later, Ms XXXX then told me the closing not go through at all and would be reversed ; my disclosure amount that I had paid {$410.00} on XX/XX/XXXX was refunded back to me. I was told the loan never funded because North Carolina took too long to process the closing.

In any case MrCooper reattempted a second time in XXXX and on XX/XX/XXXX and I closed again with a loan NC lawyer. Because the closing was close to the mortgage late payment date, I paid the mortgage as I had incurred a late fee in XXXX which was still pending removal. In XXXX, MrCooper had me pay the mortgage after we closed when the loan was taking longer to process. Once again MrCooper reversed the closing ; I was refunded the closing amount of {$760.00}. Mr XXXX told me that the loan would not settle because I had paid the XXXX mortgage. 

In XX/XX/XXXX we were to attempt a third and final closing. I received a call from Ms XXXX on XX/XX/XXXX my MrCooper 's loan processor informing me that the interest lock had expired and on that day she was calling. But even more alarming, MrCooper would not process the loan at all. The primary reason is that there is an actual Deed of Trust outstanding as public record in XXXX County indicating that I have an outstanding loan from XX/XX/XXXX when we initially closed BUT which MrCooper had reversed and never funded. They apparently did not know this from two months ago. 

When I researched the deed I discovered that the lawyer in North Carolina MrCooper had employed to present/process the original closing did not do this until XX/XX/XXXX, 7 days later, while I had signed all papers and monies were wired/received on XX/XX/XXXX. 

Mr Cooper was to release information to XXXX County to make this correction and nullify/remove this record. It has been over a month now. I recently searched the database on XX/XX/XXXX and I called XXXX County XXXX find out that the erroneous Deed of Trust is still active. 

I have yet to hear back from MrCooper. I sent an email out to the Mr Cooper/XXXX XXXX on XX/XX/XXXX last week. She emailed me back stating she was going to look into it. I have yet to hear back from her. I emailed her again yesterday XX/XX/XXXX. Still waiting for a response. 

This whole process was greatly mishandled by Ms XXXX/Mr Cooper. While she copied her direct manager, XXXX XXXX, of these interactions. She has never reached out to me. This application was a simple FHA streamline refinance application with the existing loan servicer which should have gone smoothly. This process now has turned into a nightmare and also put me in a current precarious legal position. 

Attached is a copy of the false Deed of Trust confirming the dates closing occurred and all documents were signed and the date/time stamp when presented and processed at XXXX County.

Company response to consumer: Closed with explanation