Consumer complaint received 2023-11-14
Company: Mr. Cooper Group Inc.
State: ID
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage
Sub-issue: Delays with the closing process

Complaint:
Here 's the timeline : On XX/XX/2023, my offer on a house was accepted by the seller where we entered into a written purchase and sale agreement. Since we are both XXXX we agreed to a VA loan assumption at a lower interest rate they locked in years ago. 
After home inspection was complete, the paperwork that was provided by the seller 's lender XXXX XXXX  had instructed that the next step would be for me to contact the VA. I spoke with the VA on XX/XX/XXXX to initiate the assumption process, but they said that the majority of the assumption process is actually handled by the lender, and the VA only has a 15-day timeframe to respond, approve, or deny. I called XXXX customer support on XX/XX/XXXX to relay back what the VA told me, and they let me know that the paperwork I would be submitting along with the seller would be processed within 45 days. Customer support also informed me that the credit-worthy assumption I was applying for can take 4-6 months. When I asked them to elaborate on why the 4-6 month timeline, their explanation for this delay is due to bottlenecks caused by either the buyer, seller, or the VA. Since the lease on my rental at the time didn't expire until the end of XXXX, I felt somewhat comfortable with waiting this out for a few months. 
On XX/XX/XXXX, the seller and I submitted XXXX 's requested documents. I then called XXXX, who estimated 5-10 business days for them to respond. The representative assured me that the past few weeks are included in this 4-6 month estimate. 
On XX/XX/XXXX, I checked in with XXXX 's customer service department, who confirmed my documents were received XX/XX/XXXX. They recommended checking back in another week. 
By XX/XX/XXXX, XXXX 's customer service department still had no updates. When I requested speaking directly with their assumptions department, the representative said that XXXX customer service does not have direct communication with the assumptions department and can not transfer me. 
On XX/XX/XXXX, I called the VA who let me know that the VA no longer approves assumptions themselves but instead lets the lender handle all approving, underwriting, and transferring of VA entitlements. The VA nowadays only gets involved directly if a ) lenders deny an assumption and the veteran protests or b ) if any mistakes and/or ineptitudes are demonstrated by the lender. These specialty cases are when the VA steps in to help move things along. When I brought up XXXXXXXX XXXX 4-6 month timeline, the VA rep thought this was excessive, but also said that lenders have 30 calendar days to complete a loan assumption. At the time we were still within this 30-day period ( from document receipt XX/XX/XXXX ). 
The same day ( XX/XX/XXXX ), I called XXXX to request an update. Up until this point, I had spoken with eight different XXXX customer service representatives. The ninth rep I spoke with said their assumptions department cleared the initial doc review and found no issues, so they sent our loan information to the originations team. Originations would then assign a loan officer to submit VA forms, go through the closing process, and will reach out within 10 business days to go over credit qualifications, and assist as a direct point of contact moving forward. 
I called XXXX XX/XX/XXXX, XXXX, XXXX, and XXXX requesting updates- the response each time was that every loan servicer is backed up and are experiencing peak assumption loan activity. 
On XX/XX/XXXX, I called the VA to check if they could confirm any activity from their side. The VA rep informed me that lenders don't get paid very much money to do assumptions, so they aren't incentivized to move them forward quickly. However, they informed me that I could submit a case with XXXX XXXX XXXX XXXX  and file a complaint to the Consumer Financial Protection Bureau to help move things more quickly. I opted not to, and instead escalate things within XXXX management before taking these steps. 
The same day ( XX/XX/XXXX ), I asked XXXX for an update. They let me know that my case was sent to corporate on XX/XX/XXXX ( I assumed " corporate '' meant assumptions ). They said they have 30 calendar days from THIS date to contact us, and again reminded me that credit-qualifying assumptions take 4-6 months. When asked to speak to a manager, the rep assured me that her manager also had no access to the assumptions department either. 
On XX/XX/XXXX, a representative from Mr Cooper Mortgage left a voicemail requesting my earliest availability to speak. I immediately called XXXX to ask who Mr Cooper Mortgage is, and they confirmed that while XXXX is a servicer of mortgage, they subservice some administrative to Mr Cooper, who will be moving my account forward. 
I called back the representative from Mr Cooper Mortgage XX/XX/XXXX, then again XX/XX/XXXX - leaving voicemails each time. 
I was able to speak with the Mr Cooper rep on XX/XX/XXXX, who identified himself as my loan originator. He gathered my basic information ( name, birth, social, address, employment history ), ran my credit score, and asked that I submit a few documents to his email address ( taxes, bank accounts, HOA dues, and property purchase agreement ). By the next week, he would email a welcome packet for me to e-sign. Once completed, a second person ( a loan processor ) would reach out within 7-14 days. Typically, assumptions are completed between 30-60 days of receiving the welcome packet. Since they were overloaded with assumptions at the time however, he said it might take a while longer. 
After a few days of exchanging emails with my dedicated loan originator, I noticed on one of the VA forms he sent that a close date of XX/XX/XXXX was shown. When I asked him to confirm if this was in fact our close date, he said its more typically closer to 45-60 days after he receives initial documents. 
By XX/XX/XXXX, the loan originator confirmed that he received the initial documents, and moved my file to initial underwriting review. The estimated timeframe to completion had been set to 45-60 days from this point ( 60 days = XX/XX/XXXX ). The next step would be waiting 7-14 days for the loan processor to reach out. 
On XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, I checked in with the originator requesting an update on the load processor 's whereabouts. He let me know that all initial documents were received, and that I should keep an eye out for a " conditional approval '' on or before XX/XX/XXXX. This would be the first email I receive from the loan processor of what would be needed to work toward earning a final approval. 
On XX/XX/XXXX, my wife and I were able to extend our rental 's lease one month in order to accommodate the extended duration of this loan assumption process. 
On XX/XX/XXXX, I received my first email from the loan processor congratulating me on the conditional approval of my loan request. She let me know the " whole process takes approximately 4-6 months on average, '' and requested additional information from me ( marital status, HOA bill XXXX and verification of employment ). 
The next day, I sent an employment verification letter from my employer that listed a phone number to call. My realtor also sent a requested copy of an HOA bill. 
On XX/XX/XXXX, the loan processor asked for a few more items that were missing from my initial application. The employment verification letter I submitted could not be accepted since it did not include an email address. I responded the same day addressing each missing item, including previous loan history, and history of previous credit inquiries ( the employer email address I would have to get back to them with ). I also brought up what my realtor notified me that same morning- that a close date of XX/XX/XXXX had been identified somehow. I asked if this date could be negotiated a few weeks earlier since we would have to move out of our rental before the end of XXXX, and would like to avoid moving into temporary storage and housing. I tried calling three times, but could only leave a voicemail. 
On XX/XX/XXXX, the loan processor informed me that the XX/XX/XXXX date we saw was just a target date, and couldn't guarantee a date until we were approved. She then asked for additional items regarding my spouse 's background and credit history, but would address the specifics of these in a separate email thread. She also confirmed that an email address from my employer 's HR department is the only acceptable method of contact. 
Called the loan processor XX/XX/XXXX, but no answer. 
My employer has a XXXX XXXX of over a million employees, so it took several internal calls and emails to finally receive an HR email address I could relay back to the loan processor on XX/XX/XXXX. The loan processor had not yet sent the second thread regarding spouse information. 
On XX/XX/XXXX, I asked the loan processor two very important questions. The first question was " what remaining milestones are left between now and closing? The second question was " has either my data or the current homeowner 's been exposed to Mr Cooper 's recent cyber attack? '' I had incidentally discovered through skimming news headlines of a major cyber attack that hit Mr Cooper Mortgage on XX/XX/XXXX, but was not contacted about it by Mr Cooper themselves. The loan processor responded the same day, saying they're still working on the approval but are at a standstill due to corporate security lockdown. She did not have access to the level of security breach and couldn't confirm any impact to our case in particular. 
I tried calling the loan processor twice on XX/XX/XXXX, but left no message. 
I then called the VA on XX/XX/XXXX, asking if they've seen any activity happening with this loan from their side. The VA rep confirmed no visible activity so far, and recommended again that I submit a case to XXXX XXXX XXXX XXXX and file a complaint to the Consumer Financial Protection Bureau. 
I tried calling again XX/XX/XXXX, and left a voicemail urgently asking for an updated timeline - as our rental 's extended lease was about to expire. I also followed up via email asking again for a timeline update, since the originator 's 45-60 day estimate was approaching in just days. I also tried calling the loan processor 's supervisor ( listed in her email signature ), but it was a non-working number. 
On XX/XX/XXXX, I notified the loan processor of the escalation steps I was suggested by the VA, and again asked for clarification on next steps. 
As of this writing, there have been XXXX elapsed days since the seller and I entered our purchase and sale agreement, and there is still no confirmed close date.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation