Consumer complaint received 2022-05-31
Company: MONEY SOURCE, INC., THE
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I applied and submitted a complete Loss Mitigation Application on XX/XX/XXXX for my FHA mortgage which has been in forbearance due to the covid 19 pandemic crisis since XX/XX/XXXX. 

My special COVID 19 forbearance plan is scheduled to end XX/XX/XXXX prior to this date I submitted the above application for exit options in according with COVID19 Recovery Loss Mitigation Options Mortgagee Letter there are XXXX options, COVID-19 Recovery Standalone Partial Claim For borrowers who can resume making their current mortgage payments or COVID-19 Recovery Modification : For borrowers who can not resume making their current monthly mortgage payments. 

I specifically sent along with the above application a hardship statement with several copies of my current monthly obligations, paystubs, bank statements along with the statement that CAN NOT resume my current monthly mortgage payment due to the covid 19 pandemic, a personal injury at work, and financial situation. I asked for a loan modification along with a partial claim. 

At around XX/XX/XXXX I received a letter from the servicer ( The Money Source ) offering me a Loss Mitigation Option of only a partial claim. I immediately contacted my Customer XXXX  XXXX XXXX and we spoke about the issue and he assured me that it was a mistake and I should receive another package for the loan modification would be sent to my mailing address within 5 business days! Several weeks have went by during that time I haven't received any correspondence regarding the partial claim+ loan modification the only letter I received was in regards to the changing of my customer service Ally! 

So today XX/XX/XXXX I called to speak with The Money Source regarding this matter, along with them correcting the property address they have listed, and a loss Mitigation letter. I was transferred to my customer Ally whom seem like she didn't understand the Loss Mitigation Options for exiting covid 19 forbearance so I was transferred to a supervisor whom I asked what was going on with my loan modification she stated that I wasn't offered it because it would increase my mortgage too much. 


I told her that might be true but the goal for the loan modification according to the Loss Mitigation Options letter is to reduce the P+I ( principle and interest ) by at least 25 % by the COVID-19 Recovery Modification resolves the outstanding mortgage payment arrearages by adding it to the principal loan balance of the first mortgage. The mortgage servicer then extends the term for 30 years ( 360 months ) at an interest rate that is no greater than the current fixed market interest rate identified in FHA policy as of the date the borrower is offered a COVID-19 Recovery Modification, or extends the term for 40-years ( 480 months ) at an interest rate that is no more than 50 basis points greater than the current fixed market interest rate identified in FHA policy as of the date the borrower is offered a COVID-19 Recovery Modification. The COVID-19 Recovery Modification targets reducing the borrowers monthly principal and interest portion of their monthly mortgage payment. 

The COVID-19 Recovery Modification must include a Partial Claim, so the borrower must have Partial Claim funds available. She stated the only option I have is to accept the partial claim option only but since I didn't send it in by XX/XX/XXXX The Money Source was no longer offering this option to me and I would have to submit a new Loss Mitigation Application Given that today is only XX/XX/XXXX I think it was inappropriate for her to say such a thing.

Company response to consumer: Closed with explanation