Consumer complaint received 2021-05-11
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
To everyone involved in this complaint, I semi-apologize for this complaint which may turn out to be very technical. I will do my best to illustrate my frustration in a way which is neither ambiguous nor lacking cohesion. 

To best articulate my plight, I will describe to you the goal I am currently attempting to achieve and what is preventing me from completing that goal. I am currently speaking with XXXX XXXX  in an effort to refinance my current home. As of now, I am financing my home at a 4.125 % interest rate and my payment is {$2000.00} a month. XXXX  has me pre-approved for a 3.125 % interest rate and my payment down to {$1600.00} a month. The monthly payment reduction I would receive is not an insignificant amount of money per month. We are talking over {$4000.00} a year. 

Everything seemed to be going smoothly with this refinance until I was in the middle of opening up escrow. For some reason, when XXXX runs my credit, a home equity line of credit I had opened with Specialized Loan Servicing back in XXXX and closed in XXXX is reporting what I can only describe to you as a glitch. As I said before, this part is going to become very technical. When the loan officer pulls the report, the report has to pass a system check with an automated system called XXXX XXXX. This program is what I would describe to you as a pre-qualification before the potential loan gets moved to an actual underwriter for processing. What I can not explain and neither can anyone involved in this potential refinance loan is why my report is being rejected by XXXX XXXX. The reason being given by the program is the report was 60 or more days past due within the 12 months prior to the day the credit report was pulled. I can clearly say without hesitation and with no doubt that this is simply not true. Not only is it not true because I say it isn't true, but because the report itself being pulled says its not true. If this leaves you confused then you are not alone. I believe this is also an appropriate time to disclose that I am adept at reading credit reports. I can read what mortgage lenders describe as tri-merge reports and differentiate between what is reporting on the account in question and by what bureau. 

In this case of the Specialized Loan Servicing HELOC account, the account is clearly reporting my date of last activity as XX/XX/XXXX and the date of my last late payment on the account as of XX/XX/XXXX. I do understand those dates in of themselves are misreporting on the account but I will choose to ignore those particular pieces of erroneous information as they are mostly irrelevant to what the actual problem and my complaint is for. As stated earlier, XXXX XXXX is stating XXXX XXXX is reporting a 60 day late payment within the last twelve months which is simply not true. To make matters worse, I've tried everything to have this piece of misreported information corrected. I've tried speaking to the loan officer about possibly bypassing what is clearly an error. That is not a possibility as no underwriter will touch the account until it passes the XXXX XXXX check. I have tried calling credit specialists to determine what the nature of this problem is. They described it to me in great detail and advised me of how it can be corrected but I have still had no luck. I've contacted the three credit bureaus directly and individually to have them address the problem by having them remove any 30 day late payments within the last twelve months and they all tell me a variation of the same thing. No late payments within the last twelve months are being reported. 

On XX/XX/XXXX I called XXXX XXXX since the XXXX XXXX  is saying the problem lay with XXXX XXXX. XXXX XXXX told me on XX/XX/XXXX they had already received a notification from Specialized Loan Servicing the account balance was zero and the account closed. I assumed that fixed the problem but it didn't. XXXX  reran the credit about a week later and the problem persisted. I then decided to call all three credit bureaus just in case and XXXX told me on XX/XX/XXXX the last payment on the account was made on XXXX of XXXX and no late payments have been reported since. XXXX  told me on XXXXthe account was reporting a 120 day late payment but this was on XXXX of XXXX. Once again there are no late payments in the last twelve months. XXXX XXXX told me on XX/XX/XXXX the last late payment was in XXXX. All of the credit bureaus are telling me there are no late payments in the last twelve months. Once again I assumed the issue was corrected and once again I was wrong. 

When XXXX ran the report the problem STILL PERSISTED. You must forgive me if I become a little belligerent over the next few paragraphs because I was no longer amused as everyone involved was telling me there was no problem with the account and THERE IS NO LATE PAYMENT in the last 12 months. THERE IS NO PAYMENTS AT ALL since XXXX or XXXX depending on the bureau you look at. After more brainstorming with the loan officer, we figure out what the potential issue was. This is where it gets really technical. In the tri-merge report, the Specialized Loan Servicing account is reporting a " last reporting date '' of XX/XX/XXXX. In this section, the account goes on to show the entire payment history of the account from when it was opened up until the last report entry. It shows the payment history by code. These codes can be a 1 for on time payment, 2 for 30 day late payment, 3 for 60 day late payment, a - for no data, etc. For the Specialized Loan Servicing account reported by XXXX XXXX, it showed numerous -- -- -- for several years worth of payments. Unfortunately, XXXX XXXX has to take those payments into consideration even without a specific code. Because the last actual entry on this payment history is a 60 day late payment, XXXX XXXX is assuming I have 60 day late payments all the way up until XXXX of XXXX. Because of this I decided to make another call to try and have this problem resolved. 

On XX/XX/XXXX I spoke directly with Specialized Loan Servicing to advise them of my problem. Specialized Loan Servicing informed me they were not reporting any new payment history since XXXX it was pretty much at this point where I started ripping my hair out. For days I tried to figure out what step to take to solve this RIDICULOUS problem! The next solution my loan officer and credit specialist came up with was to simply dispute the account from the credit report. Once the account is disputed, XXXX XXXX will no longer pick up the account and we can proceed with the loan. I called Specialized Loan Servicing today to try and dispute the account but they are now telling me they are " still updating the account status and if I wanted to get the dispute done I would have to do it in writing and submit it to XXXX XXXX XXXX XXXX COLORADO XXXX. ACCOUNT # XXXX. No sir! I am done. If I am going to spend any more time on this account it is to file this complaint with your agency against Specialized Loan Servicing and XXXX XXXX. 

I do not care it its right or wrong. I do not care if its not their intention or if it is. I do not care if this is simply a glitch. The bottom line is this error is costing me my interest rate on a refinance I am attempting to get done. This refinance is not being stopped because of my income, my debt, my credit score, or any list of hindrances which prevent people from qualifying for a loan such as employment history, tax history, fund verifications, public record searches, or the plethora of other reasons as to a denial of a loan. This refinance is being stopped because of a misreporting or a glitch either on XXXX XXXX or Specialized Loan Servicing 's part for this account. You don't have to take my word for it. The radio, news, lenders, advertisements, and numerous sources of information are telling people the interest rates on mortgages are increasing again. From XX/XX/XXXX of this year until now the average interest rate for a 30 year loan has increased from a 2.8836 % to a 3.0737 %. This problem is COSTING ME TIME AND MONEY! At this point I am now placing the blame on XXXX XXXX and Specialized Loan Servicing. If I have to, I will sue them both. And since they can't see to agree that there is a problem, nor can they competently fix the problem for me, I demand they simply remove this account from my report so I can proceed with my home loan.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation