Consumer complaint received 2019-03-27
Company: Mr. Cooper Group Inc.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX Hello, My home located in XXXX XXXX, Florida was damaged when Hurricane Michael came ashore nearby XX/XX/XXXX. I immediately contacted my insurance company XXXX XXXX, the following day to begin the rebuilding process. I also contacted my mortgage company ; Mr. Cooper Loans within the following 3 business days. 

I have struggled with the rebuilding process and unfortunately the actions now taken by Mr. Cooper Mortgage has brought the repairs to a complete halt and my need for your assistance is at an emergency status. XXXX XXXX has issued the following payments that I immediately sent to Mr. Cooper for processing ( dates included ) ; XXXX {$35000.00} Mr. Cooper endorsed and released for repairs. 
XXXX {$8700.00} Mr. Cooper endorsed and released for repairs. 

XXXX {$55000.00} Mr. Cooper still is withholding. 
XXXX {$5400.00} Mr. Cooper still is withholding. 
XXXX {$4000.00} Mr. Cooper still is withholding. 

To date I have had AND supplied Mr. Cooper with the documentation ( receipts, invoices, inspection approval, etc. ) showing that I have had the following repairs completed and paid for. 

{$15000.00} Roof Replacement {$2000.00} Electrical Repair {$4500.00} Installment on Drywall and Insulation Replacement {$3500.00} Pool Repair {$5500.00} Fence Replacement {$15000.00} Cabinetry {$47000.00} Total from above ( Repairs completed and Paid ) - XXXX Endorsed and Released by Mr. Cooper -- -- -- -- -- -- -- -- - {$3300.00} Out of Pocket left awaiting reimbursement Beyond the above issue of being out of pocket {$3300.00} and the documents to prove this. The reason the last two checks ( {$5400.00} and {$4000.00} ) were separate from the check sent on the same day for {$55000.00} was because XXXX XXXX specifically documented on the check stubs and other supporting documentation that they were for reimbursement to me for certain repairs ( listed in detail on each one ) AND specifically to purchase a portable building that the insurance company had significantly underpaid me previously for. The purchase of this portable building, I have not had the funds to complete until Mr. Cooper releases funds however they have the invoice and instructions from XXXX XXXX for the funds received. 

Now to their reasoning for not releasing funds : they have had so many and over 6 week- I will list and explain the reasons and my responses as I have tried so many times to resolve this with them. 

1. Their first issue was that an inspection needed to be completed to show that at least 50 % of the repairs had been completed. I welcomed that opportunity and immediately made myself available and the inspector approved repairs and even went beyond 50 % complete to 70 % complete. The inspection was completed on XX/XX/XXXX and approved on XX/XX/XXXX. 
2. Then, although my General Contractor for all inside home repairs, roofing, and siding was to be XXXX XXXX XXXX XXXX XXXX ; my Contractor is and has always been XXXX XXXX for Pool Repairs- this ALSO is listed on the Insurance Adjusters worksheet as well ; and as for Screen Room, Awning, Patio, and Fence was listed as XXXX XXXX on the Insurance Adjusters worksheet very clearly. All 3 contractors license and information were sent in with the paperwork as received. 
Unfortunately, XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX due to a discrepancy in billing and dissatisfaction with repair being done and the owners frustration in delay of payment from Mr. Cooper decided to terminate the contract. Mr. Cooper decided that although XXXX XXXX  was only 1 of 3 contractors listed- they would STOP ALL funds from moving forward as opposed to just XXXX XXXX. 
Despite consistent calling and getting different information from Mr. Coopers Loss Claim department, I stayed on track while sending in the necessary documents they asked for- I also began getting estimates from sub-contractors to complete the remaining repairs. Each time I sent in something they requested ( ex. Letter from XXXX XXXX stating acknowledgment of termination ) I was told this was all they needed, that was all that was holding the funds up and progress from being made. However, the next phone call it was something else. 
3. Last Thursday, XX/XX/XXXX I was able to upload the SIGNED final invoice from XXXX XXXX  and was told by a Mr. Cooper representative XXXX that she was sending my current estimates through for approval and I explained the importance because this delay was causing an approaching time that the contractors were needing funds and I could not keep paying out of pocket PLUS my current living arrangements would be ending XX/XX/XXXX. She assured me that this would be a 7- day process and that the funds would be overnighted once approved. She stated that they could only process 2 estimates/invoices at a time ( which I could not understand yet I had no choice at the time other than to accept what they say ) and she was going to send through the XXXX XXXX Invoice and 1 of my reimbursement requests. My plan was that if this was indeed the case I would just pay upfront my next repair with the reimbursement funds when they arrived to prevent stopping the repairs on the home. 
4. Then yesterday, Tuesday XX/XX/XXXX ; I called Mr. Cooper Loss Claim department to get the status of last weeks request and was told first by a representative then later by a manager XXXX that last weeks disbursement was denied because they had ANOTHER document that they needed me to sign regarding the termination of XXXX XXXX XXXX XXXX XXXX  contract. 
This was never brought up before nor had I been contacted of this hold up. XXXX informed me that if I allowed her to fax it to mesigned it -- - and faxed it immediately back to her- that this was the only thing holding the claim up. Of course, I did so immediately, then ... 
5. Later yesterday afternoon ( XX/XX/XXXX ) ; I called and spoke with XXXX to discuss that as I explained to her earlier I CAN NOT keep paying out of pocket, meeting with contractors, getting on their schedule, watching my house rot as portions are not covered because they will not release funds for vinyl siding, and now that I can no longer trust that they WILL EVER reimburse me this is a very scary circumstance they are forcing upon me ; I am now going to be forced to cancel contractors that I have worked so hard to get scheduled and then defiantly will run out of time on my living arrangement covered and provided by XXXX XXXX. She then explained that she COULD possibly get the approval in real time which I came to understand as while I was on hold so she tried and then was told by someone in that department that they would need to re-look at the account. With that said, I knew then I had done all I could, and I am going to be forced to cancel repairs. 
6. I called again this morning and was told the same thing that it could take up to 7 days and even then, they would only process one estimate at a time.

7. She also this morning went on to say that even if they did approve ONE of my needed upcoming repairs that at that point I would need an inspection to prove 75 % of the repairs were complete. I explained to her and she confirmed that the inspector approved it at 70 % and they have not released ANY funds since that inspection and she still insisted on a 75 % inspection so I ended the call explaining how I was being forced to cancel repairs and I could no longer pay out the funds and that I would welcome the inspector because even though they had not paid out any funds ; I had paid for the front door replacement and the kitchen cabinets installation would be completed next week. If, the inspector follows his same guidelines then I know I will have increased by more than 5 %. 

This is a very unfortunate circumstance because the home is close to being livable again and I am single, XXXX mom so I am asking for any assistance your agency can provide. I am current on my mortgage payments however I have in the past fell behind due to a four year long divorce and an ex husband that currently is over {$10000.00} behind on child support. I feel that I have done everything possible to resolve this and am truly being forced to soon be homeless. 

I also must mention that I have incurred the cost of the deductible through Personal Property Damage and the Mold policy deductible and both of these costs are not involved in the above amounts. These amounts are strictly related to funds made payable to Mr. Cooper. 

Lastly, Mr. Cooper had first informed me that they would endorse and release funds to {$50000.00} yet- and because of this and as you see the endorsements stopped at {$43000.00} ; they sent a check on XX/XX/XXXX with my former spouse listed as a payee. This is WELL documented and even admittedly so a mistake on Mr. Coopers Loss Claim Departments part ( I have a letter showing that my former spouse is NOT to be a payee under any circumstances, this letter is from Mr. Cooper Mortgage and stems from my divorce documents ). When I called, and they acknowledged their mistake, they stopped payment ( date : XX/XX/XXXX ) however they did not and will not replace that payment or amount as one processed. 

I am at a complete loss of how to move forward. I thank you for any assistance you can provide. 

Respectfully,

Company response to consumer: Closed with explanation