Consumer complaint received 2023-07-11
Company: Mr. Cooper Group Inc.
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
My Loan was sold from XXXX to MrCooper XX/XX/XXXX. During that time I was in an approved Covid 19 Forbearance to end XX/XX/XXXX. I applied for XXXX  Covid related Mortgage assistance grant and was approved and funded on XX/XX/XXXX to cover the 12 month forbearance period, as well as 3 additional payments which would make me due again XX/XX/XXXX. MrCooper received approximately {$40000.00} which included the 3 additional payment and the past due amount for 12 months, they then applied correctly. This is also based on figures MrCooper sent XXXX before the check was sent. On XX/XX/XXXX, MrCooper approved a partial loan modification for approximately {$19000.00} which the pending loan mod application should have been canceled by MrCooper after XX/XX/XXXX when the XXXX funds were received and made my account current. MrCooper failed to catch this and still approved the partial loan mod. Because of this MrCooper reversed the XXXX  payment, applied the partial loan mod, then put the XXXX funds toward my principal balance only. This left me with an outstanding escrow shortage of {$10000.00} which would in turn increase my monthly payment by closing to $ XXXX additional for 1year. I tried numerous times to work with MrCooper, XXXX, and Legal Aid to fix MrCoopers error. After several attempts, MrCooper then started to threaten to send the XXXX Grant back to the state and refused to cancel the modification since they stated I could not do both. I asked to keep the grant which brought me current, and cancel the partial loan mod which was approve well after the Grant had been applied and should have been caught by MrCooper. I was told by their rep that the loan mod has been recorded and could not be reversed. I received several adjusted statements over the past two months because MrCooper continued to move funds around and restructured my account. The latest XX/XX/XXXX statement said I'm due XXXX for {$1800.00} which I paid and now MrCooper will not apply those funds to XXXX. instead it too sits on the account as unapplied. MrCooper continued to threaten me 3x saying they're sending the funds back because I didn't want to just accept the grant being applied as a principal payment only, leaving me with $ XXXX due for taxes. MrCooper then told me they have requested additional funds from XXXX to cover taxes. I explained the original payment covered my taxes as they are escrowed and MrCooper needs to apply the grant accordingly. MrCooper then told me I need to submit another application for grant funds myself through the XXXX site which I did on XXXX, it was denied due to my account being current. On XX/XX/XXXX I receive several document alerts from MrCooper, one says I'm in default and at risk of legal action, one says, I have an unapplied payment of {$1800.00}, the others were required notices that mortgage co have to send advising of assistance options. My account is now as of today XX/XX/XXXX show due $ ( XXXX ) due by XX/XX/XXXX and past due. I was called by a MrCooper Rep who escalated my case yesterday and told that the teams response is now that XXXX is requesting the funds back as of XX/XX/XXXX. I called XXXX and they have no record of this request. First MrCooper threaten to send the funds back, now they're claiming XXXX is requesting the funds back which is not true. I am asking MrCooper to take ownership of their error of approving the partial loan modification, even after the XXXX grant funds were received and applied. Now that the loan mod can not be reversed, please still apply the XXXX funds according to the original agreement and do not send the fund back. MrCooper has bullied me as a consumer and has refused to let me talk to the " processor '' who's stating all of these different threats.

Company response to consumer: Closed with explanation