Consumer complaint received 2022-11-11
Company: Mr. Cooper Group Inc.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My mortgage is being serviced by XXXX XXXX since XX/XX/XXXX. 
XXXX, I did a cash out refinance ( {$250000.00} ) with XXXX XXXX XXXXXXXX. 
The terms of my 5/6 Adjustable Rate Promissory stated, 10 years interest only payments, the first 60 months paid are fixed interest only payments while interest only payments only 61-120 have the potential to adjust every 6 months for the life of the loan. Payment 121, interest only no longer applies and repayment is to include the principle amortized over 20 years/240 months. 
The Note holder is responsible to amortize the principle and interest in a manner that sufficiently calculates repayment of the mortgage in full within the time limit on the Note. No balloon exist. 
My Loan was serviced by Aurora Loan until XXXX. I do have complaints against AuroraLoan for mis management of Escrow and not applying payments accordingly, I will not elaborate in this complaint against Mr.Cooper even though there are one company. 
XXXX, Mr Cooper/Nationstar became the new loan servicer until XX/XX/XXXX. 
In XXXX, ( unbeknown to me at that time ) Mr. Cooper began to move my monthly mortgage payments into an " unapplied funds '' status, never applying or crediting the " unapplied funds '' to reduce the principle or interest balance of the mortgage. The following amounts listed below are the total amount of " unapplied funds '' taken annually from XXXX and not applied to my mortgage. 
I would also like to address missing payments that Mr. Cooper documented, not paid during Covid 19 forbearance totaling an exaggerated {$26000.00}. I 13 missed payments. Mr. Cooper returned my bank wire payment {$6200.00} in XXXX. I was attempting to give the money back to Mr. Cooper because 2 months prior to my homeowners insurance policy expiring, I sent a letter explaining I switched companies and have already advise current company of such changes and to cancel renewal. In my letter to Mr. Cooper I also advised that the current policy that I purchased was paid in full. Mr. Cooper sent both companies a payment sufficient to secure both policies for the year. Again I sent letters and tried to return the additional payments to Mr. Cooper, however my monies were rejected and sent back to my bank account.Mr. Cooper gave no reasonable explanation why my payment was refused. 
UNAPPLIED FUNDS. # of PAYMENTS MADE -- // -- MISSED XXXX -- {$68.00}. XXXX XXXX XXXX -- {$1100.00} XXXX XXXX XXXX -- {$400.00} XXXX. XXXX XXXX -- {$480.00} XXXX. XXXX XXXX -- {$53.00} XXXX. XXXX XXXX -- {$1200.00} XXXX XXXX XXXX -- XXXX XXXX XXXX. XXXX XXXX -- {$3200.00} XXXX {$6600.00} Total of unapplied funds taken and not applied to reduce the balance of my mortgage principle. 
Mr. Cooper purchased Lender forced placed insurance ( cost {$1600.00} ) in XXXX, for the same year in which they mailed out 2 insurance payments, ( XXXX {$680.00} & XXXX {$22000.00} ). They never credited my account or refunded back the {$1600.00} that was taken from a monthly mortgage payment to satisfy the unneeded homeowners insurance policy.

Company response to consumer: Closed with explanation