Consumer complaint received 2016-12-19
Company: NATIONSTAR MORTGAGE LLC
State: FL
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
Errors / Dispute 1. Income : The income should not be grossed down. 
Response to Nationstar response letter, dated XX/XX/XXXX and prior : The resolution response is incorrect, as self employment income may be grossed down if the income is non-recurring. Each of XXXX entities ( on schedule C ) have been existing since XXXX, XXXX, XXXX and XXXX. Therefore, they should not be considered non-recurring income. Per guideline, " When calculating gross income for self-employed borrowers, a servicer must include the borrower 's net profit plus any salary or draw amounts that were paid to the borrower in addition to making allowable adjustments used in analyzing the tax returns for the business, if applicable, to decrease gross income ( e.g. nonrecurring income ) or to increase gross income ( e.g. expenses, depreciation and depletion ). If consistent with the Verification Policy ''. 
Per Resolution Letter : " With regard to XXXX self employment income, the income was calculated per the Making Home Affordable ( MHA ) guidelines 5.1.2. The total profit was grossed down to 80 %, to account for self employment taxes. This is the only part of the income that was grossed down ''. 
The gross income of {$15000.00} was grossed down to {$12000.00}. This does not comport with mandated income calculations. This is not a GSE loan. Self-employment income has not been required ( MSA, LPA or otherwise ) to be netted down since XXXX. See specific underwriting guidelines below. 
2. Nationstar has incorrectly calculated expenses, on three separate reviews. 
Expenses : Denied for negative disposable income. The previous modification review resulted in incorrect expenses of {$20000.00}. This review resulted with total monthly expenses of {$12000.00}, which is still incorrect, but qualifies. The correct total housing expenses is {$10000.00}. Also, the AMEX is company paid each month and that payment should not be considered. It is not personal debt and the company pays each monthly amount/expenses out of company funds. 
3. Erroneous Run Around : My XXXX File Contains 211 Files and 16 Folders. See system summary report pursuant to documents requested and provided ; from initial application. I immediately responded to and provided any and all conditional documentation for verification of all for request. Nationstar failed to review in time causing the documents to expire and/or would condition on the same condition over and over. The initial file was submitted in XX/XX/XXXX yet not cleared and initially underwritten until XXXX, then again in XXXX. Both of which were incorrectly denied. The first dispute review was confirmed incorrect. " A person who, in the ordinary course of business, regularly participates in a credit decision, including setting the terms of the credit. '' 12 C.F.R. 202.2 ( 1 ). " Any assignee of any original creditor who participates in the decision to extend, renew, or continue credit. '' 15 U.S.C. 1691a ( e ). 
4. Nationstar 's Denial of loan mods based on claimed investor limitations when PSA indicates no such limitations. The Trust 's Modification History Confirms Eligibility and Qualifications via precedent. LPA and audit attached. 
5. FDCPA : Nationstar failed to adjust the payment per the Note / Adjustable Note Rider. The Interest Rate and Payment Changed on XX/XX/XXXX. Reporting and calculated payment based on incorrect rate of 5.75 % w/ I/O. Correct rate is 3.125 %. See below and reference the Rate Change Notice, Adjustable Note Rider and Mortgage Statement. 
6. Defects of Chain of Title & Assignments : The loan was originally made to XXXX and was sold and transferred to XXXX. There is no record of Assignments to either the Sponsor or Depositor as required by the Pooling and Servicing Agreement.

Company response to consumer: Closed with explanation