Consumer complaint received 2019-07-17
Company: Mr. Cooper Group Inc.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX, Wells Fargo Bank N.A. ( WFB ) filed the attached false and manufactured unsecured proof claim in the amount of {$830000.00} ( the Claim ). 

Please confirm that WFB is aware of and approved the Claim as the Claim requests payments go to a law firm trust account, which gives the impression that the law firm is acting on its own behalf in an attempt to collect legal fees. 

The Claim is knowingly false and abusive including for the following reasons : 1 ). My XXXX, NV property was sold on XX/XX/XXXX with the full knowledge and participation of WFB : the note and deed of trust were paid in full through escrow and title and returned to me marked PAID in Full ( attached ). A full reconveyance of the deed of trust and satisfaction of the note was filed in the land records ( attached ). WFB purports to act as trustee for the certificate holders of XXXX XXXX XXXX, mortgage-backed securities. In that capacity, WFB reported to the certificate holders of XXXX XXXX that after the sale of my property the loan is no longer in bankruptcy, it has been liquidated with any and all losses fully realized. See the attached XX/XX/XXXX, XXXX XXXX investor statement : page 22 lists 3 loans currently in bankruptcy of which mine is not included, and page 25 seventh entry from the bottom indicates the loan was liquidated. 

2 ). WFB 's standing turns solely on possession of the original note and deed of trust. WFB admittedly does not have possession of the instruments, they were returned to the makers. Rather than attach a copy of the note and deed of trust in the condition last known to WFB wherein they are marked PAID IN FULL, WFB attached an earlier version of the Note to the Claim without including an accounting of the payoff nor disclosure that WFB is no longer in possession of the Note it attached to the Claim -- it was paid in full through escrow and returned to me and my husband. 

3 ). WFB purports to be acting for the certificate holders of XXXX XXXX XXXX, and is aware it can not and does not own unsecured debt. XXXX XXXX purports to be a loan trust backing publicly offered securities that elected tax-exempt status as a XXXX XXXX XXXX XXXX XXXX ( XXXX ) and does not own any unsecured assets. Any and all statutes, rules, or public policies governing mortgages, provide that the definition of a mortgage is a loan secured by real property. XXXX   XXXX governing documents do not allow any unsecured assets to be property of the XXXX. 26 CFR 1.860G-2 ( a ) ( 3 ) ( iii ) Later discovery that an obligation is not principally secured. If, despite the sponsor 's reasonable belief concerning an obligation at the time it contributed the obligation to the XXXX, the XXXX later discovers that the obligation is not principally secured by an interest in real property, the obligation is a defective obligation and loses its status as a qualified mortgage 90 days after the date of discovery. 

4 ). In an attempt to give themselves an out if the false nature of the claim is discovered WFB included the following caveat to its unsecured claim : *The claim amount at this time is estimated and subject to revision for the following reasons. This loan was previously secured by a deed of trust against the real property located at XXXX XXXX XXXX XXXXXXXX XXXX XXXX, XXXX NV XXXX. On XX/XX/XXXX, the deed of trust was conveyed due to the payoff of the secured portion of the principal balance of the loan under XXXX XXXX XXXX plan. Creditor is still in the process of reviewing the legal effect of the XX/XX/XXXX conversion of this case to Chapter XXXX and reconciling the accounting of the loan based on the conversion. WFB is fully aware that it does not and can not own an obligation that is not principally secured by real property. The pay-off referenced did not solely pay the secured portion of the loan, it paid the loan in full through escrow, the instruments were returned to me marked PAID IN FULL, and supported by the full reconveyance and satisfaction filed in the XXXX XXXX, NV. 
recorders office. 

Given WFBs widely-reported pervasive and persistent misconduct, including manufacturing business records to illegally open over 3.5 million fake banks accounts, ( see Every Wells Fargo consumer scandal since XXXX : A timeline XXXX XXXX XXXX, and see the attached detail of the misconduct of Wells Fargo during one 17-month period ), WFB 's conduct in filing the false Claim through manufactured books and records to create unsecured debt it does not and can not own, is particularly egregious and disturbing.

Company response to consumer: Closed with explanation