Consumer complaint received 2023-11-04
Company: CMG MORTGAGE, INC
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage
Sub-issue: Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu

Complaint:
Regarding CMG Mortgage 's response, it appears that several rules and guidelines may have been broken or violated. 

These include : Misrepresentation and Deceptive Practices : XXXXXXXX XXXX may have misrepresented or provided misleading information regarding the nature of my communication, the eligibility criteria for various programs, and the handling of my loss mitigation application. This may violate regulations related to fair and transparent communication with borrowers. 


Failure to Follow Established Procedures : I have pointed out discrepancies in the handling of my case, such as the immediate transfer to the loss mitigation department without a standard screening process, which raises questions about whether CMG Mortgage followed its established procedures. This could be a violation of internal protocols and industry standards. 


Premature Denial of Loss Mitigation Application : CMG Mortgage appears to have denied my loss mitigation application before the specified deadline for submitting additional documentation, which could be considered a premature denial. This might violate regulations that require servicers to provide borrowers with a fair opportunity to complete their applications. 


Lack of Transparency and Incomplete Communication : CMG Mortgage 's responses may lack transparency, clarity, and completeness, particularly in cases where I was not informed of changes in eligibility for modification programs or the reasons for my denial based on the written response to the CFPB. This could be a violation of regulations that require servicers to provide clear and detailed communication to borrowers. 


Failure to Offer All Available Options : I have mentioned that CMG Mortgage did not offer the VA Refund Mod, which may be considered a failure to offer all available foreclosure prevention options to eligible borrowers. This could be a violation of regulatory guidelines. 


Negligence in Document Processing : If CMG Mortgage falsely claimed that documents were not legible when I provided them both in email and hard copy, this could indicate negligence in document processing, which XXXX violate their responsibility to handle borrower documentation accurately. 


Failure to Document Phone Calls : I have requested transcripts of phone conversations with CMG Mortgage representatives to substantiate my claims. If CMG Mortgage failed to maintain accurate records of these calls, it could be a violation of regulatory guidelines regarding record-keeping and documentation. 


Lack of Timely Response and Resolution : CMG Mortgage 's responses seem to have caused delays, confusion, and inconsistencies in the handling of my case. This could be considered a failure to provide a timely response and resolution to my inquiries and concerns. 


Outline of Letter from CMG XX/XX/XXXX letter : Repayment options. Modification or repayment plan. 

XX/XX/XXXX : Acceptance of forbearance assistance extension. A call took place prior to this where the representative told me that I would not be able to request a modification without my ex-husband 's signature and he would have to be removed from the deed. 

XX/XX/XXXX : Payoff statement. 

XX/XX/XXXX options letter : These letters are only sent after phone communications. CMG gives multiple options which makes it a legal offer to be considered for the options. This is a form of contract also. 

XX/XX/XXXX : Another payoff statement after me calling in once again to discuss options to save my home. I was gathering these statement to make sure they were reflecting the most current amount as I got closer to the court date. 

XX/XX/XXXX : Another options letter. 

XX/XX/XXXX : States, " my application will be reviewed by CMG Mortgage , Inc. within thirty ( 30 ) days of XX/XX/XXXX. If additional information is necessary to evaluate my Loss Mitigation Application, we will send a letter advising you of the documentation needed to complete the evaluation. You will have thirty ( 30 ) days to submit the requested documentation, which could lead to the evaluation process taking longer than expected. '' On the Same Day XX/XX/XXXX : Letter saying, " After careful review of my individual circumstances and account, we have determined you do not qualify for a Streamline Modification and a full financial evaluation is necessary for you to be considered for additional mortgage assistance. Options May Be Available : The right option for you depends on my individual circumstances. If you wish to be evaluated for mortgage assistance programs, please review and complete the new application, then submit with all the updated supporting documentation. '' XX/XX/XXXX : Default letter with additional options. This day was when the lady said the last representative sent me the wrong application. We were having general conversations and I was waiting for an application in the mail. 

XX/XX/XXXX : Contact letter because I was in default. 

XX/XX/XXXX : I had several conversations with representatives from XX/XX/XXXX to the XXXX at which time I called to confirm that they received all of my documentation. The documents were signed for and delivered on XX/XX/XXXX. 

XX/XX/XXXX letter : " We are contacting you to confirm that we have received my request to be considered for mortgage assistance program ( s ) that may be available. At this time, my assistance application is incomplete. In order for us to be able to determine if you qualify for a mortgage assistance program, we must receive the required documentation by XX/XX/XXXX. Below, please find a list of documents that need to be submitted to finish my assistance application. 

Missing Documents/Documents Still Needed : General : Please return my completed application for loss mitigation assistance signed and dated by all parties. ( The Uniform Borrower Assistance Form ( UBAF ) provided is not legible. Please resubmit a completed UBAF signed and dated with all pages. ) THERE IS ZERO MENTION OF MISSING INCOME. IT SAYS THE LETTER WAS NOT LEGIBLE. I SENT IT IN EMAIL AND A HARD COPY. THEY RECEIVED THE ORIGINAL AND A SCAN. I HAVE BOTH. HOW COULD IT NOT BE LEGIBLE LESS NEGLIGENCE ON CMG DOCUMENT PROCESSING SPECIALIST. FURTHER, IT STATES THAT I HAVE UNTIL XX/XX/XXXX TO PROVIDE THIS INFORMATION. '' XX/XX/XXXX : Another missed payment letter. 

XX/XX/XXXX : They have been unable to reach me letter. 

However, they responded stating that we had communications. 

XX/XX/XXXX : Default letter. 

XX/XX/XXXX : Housing counseling letter. 

XX/XX/XXXX letter : " We have received my request to be considered for a loan modification or other foreclosure prevention alternative. We will review the documentation you provided. We will notify you by mail if further information is needed to determine if you qualify for a mortgage assistance program or if we are unable to review my package due to a scheduled foreclosure sale. If my package is deemed incomplete, a letter will be sent listing the missing documents that are needed to complete a full review. Attempts to contact you will be made to collect any missing documents for a reasonable period of time. '' XX/XX/XXXX Denial letter : " We have completed our review of my request for a loan modification or other foreclosure alternative and have determined that you are ineligible for the reasons listed below : After reviewing my financial information it was determined that my income is insufficient to qualify for this homeowners assistance program. In completing our review of my housing expense to income ratio we determined that it does not meet the requirement for a loan modification. The capitalization required to modify this loan exceeds the guidelines of this program. '' THIS IS A VA LOAN!!!! Now with the amount of debt that its been allowed to incur due to CMGs negligence it XXXX be extremely hard to get approved for anything although I make XXXX percent more than I did when I had got approved originally. 

XX/XX/XXXX : " Thank you for submitting a Loss Mitigation Application Package. My application is complete as of XX/XX/XXXX, and no further information is needed at this time. Now that my application is complete, you are entitled to certain foreclosure protections. You may also be eligible for additional protections under State or Federal law. '' XX/XX/XXXX letter : " We have received your request to be considered for a loan modification or other foreclosure prevention alternative. '' XX/XX/XXXX letter : " CMG Mortgage , Inc. has reviewed my Loss Mitigation Application. In order for us to determine my eligibility for a loan modification or other foreclosure alternative, additional information is needed. Please supply the following documents and/or information within thirty ( 30 ) days of the date of this letter. If it is not received by XX/XX/XXXX, your request for a foreclosure alternative may be denied. 

XXXX XXXX : Please return a copy of the most recent pay stub and documentation of year-to-date earnings if not on the pay stub or the two most recent bank statements showing the income deposit amounts. ( The UBAF reflects a change in circumstances, please provided a current pay stub or 2 most recent bank statement showing income deposits. ) '' XX/XX/XXXX letter : " Thank you for my recent communication. We will promptly review and thoroughly research my inquiry. Once those steps have been completed a response will be provided within thirty ( 30 ) days. '' XX/XX/XXXX letter : " Thank you for submitting a Loss Mitigation Application Package. Your application is complete as of XX/XX/XXXX, and no further information is needed at this time. Now that my application is complete, you are entitled to certain foreclosure protections. You may also be eligible for additional protections under State or Federal law. my application will be reviewed by CMG Mortgage , Inc. within thirty ( 30 ) days of XX/XX/XXXX. If additional information is necessary to evaluate my Loss Mitigation Application, we will send a letter advising you of the documentation needed to complete the evaluation. You will have thirty ( 30 ) days to submit the requested documentation, which could lead to the evaluation process taking longer than expected. '' Subject : Response to CMG Mortgage , Inc. 's Statement and Request for Call Transcripts Dear CMG Mortgage , Inc. Management, I hope this letter finds you well. I am writing in response to the communication I received from your Executive Resolutions Specialist at CMG Mortgage , Inc., dated XX/XX/XXXX, which outlined their perspective on our interactions and the events surrounding my mortgage account. 

I appreciate your response but feel it necessary to address several key concerns and discrepancies that have come to my attention. 


1. Payoff Statement Request and Deed Revision : CMG Mortgage 's statement : " Between the timeframe of XX/XX/XXXX through XX/XX/XXXX, our records do not indicate that we had offered the borrower a loan modification nor did we request for the borrower to revise their deed. '' My response : How would you know the nature of the request for the payoff statement if you had not listened to the calls? Furthermore, the nature of my request for the statement was in fact not for the purchase or sale of the home. It was primarily to obtain documentation to support my claim given the reluctance on your part to consider my application for a loan modification. Moreover, our conversations included discussions wherein your representatives clearly stated, not implied, but affirmatively stated that my ex-husband 's signature or removal from the deed were required to proceed with any modifications. A transcript of these calls is necessary to provide clarity on the nature of these conversations. 

2. Request to Remove from Forbearance : CMG Mortgage 's statement : " On XX/XX/XXXX, we spoke to the borrower in which they requested to be removed from the forbearance. The agent transferred the call to the loss mitigation department based on the borrowers request. However, the borrower disconnected the call. '' My response : It is important to note that this is not your standard business procedure, as I have since learned that a general screening takes place before any transfer. In this case, it was the representative who ended the call abruptly during the transfer. It is crucial to address this inconsistency to clarify what transpired during this call. This call will also highlight many of the details I have eluded to regarding CMGs mishandling of my mortgage. 

3. Streamline Modification : CMG Mortgage 's statement : " On XX/XX/XXXX, the borrower contacted us and requested information as to what options are available. On the same date, it was identified that the account was not eligible for [ a Streamline modification ] as it was no longer an option. '' My response : On what basis was a Streamline modification no longer an option? How was this determination made within a single day, and why was this not clearly communicated during the phone conversation? I was informed that I would receive an application, which led me to believe it was an available option. Furthermore, during the original conversations it was the only thing presented until in later phone calls I became in contact with the representative whoms name I will not reveal at the moment, however that person educated me on much of your mishandling, my options, and confusion. I did not receive proper information, which should have included alternative options. A transcript of this call is essential to resolve these discrepancies. 

4. Loss Mitigation Application : CMG Mortgage 's statement : " Our records show that a loss mitigation application was submitted and received in our office on XX/XX/XXXX and XX/XX/XXXX. '' My response : It is crucial to note that a missing document letter was sent on XX/XX/XXXX also, listing the required additional information needed by XX/XX/XXXX. Given the timeline, it appears that the application was denied prematurely. A transcript of the XX/XX/XXXX and XX/XX/XXXX conversations will shed light on the circumstances surrounding this denial. 

5. Delinquency Report : CMG Mortgage 's statement : " Please be advised, our records do not indicate that a delinquency was reported during the forbearance period. A delinquency was reported on XX/XX/XXXX to the credit bureaus because the account was not brought current at the end of the forbearance period. However, as a courtesy, a credit correction was submitted to remove the said delinquency. '' My response : The delinquency reporting is inconsistent with the timeline provided. It is essential to clarify this discrepancy and ensure that my credit report is accurately updated. My account should have never been delinquent. I had the money to pay your company immediately when I asked about my options in XX/XX/XXXX, during the very first notification to CMG that I was divorced now and the single home owner. 

6. Legal Action Taken : I wish to bring to your attention that my concerns are not isolated but had been escalated to XXXX point where I felt compelled to seek legal recourse. I filed a Motion to Enforce Settlement Case : XXXX, Number XXXX. This motion was based on the conversation I had with a CMG representative, who conveyed that my ex-husband 's involvement in signing the quit claim deed or modification was crucial to move forward. This situation had resulted in financial harm and potential economic waste, potentially leading to foreclosure. This statement is memorialized in my court documents and I testified to this in my statements. That I could not secure a modification although I was the single person on the loan. 
The importance of transcribing the phone conversations is heightened by the fact that CMG is effectively questioning the accuracy of my legal actions, implying that these conversations never took place.

7. Misinformation Allegations : While CMG asserts that no misinformation was provided during our interactions, I must stress that my timeline, records, and the information within my possession suggest otherwise. The discrepancy between the content of our conversations and the claims in my response highlights the potential for misinformation or misunderstanding. A comprehensive review and clarification of these issues are necessary.

8. Failure to Offer VA Refund Modification : In addition to the above discrepancies, I must also address CMG Mortgage 's failure to offer all available options, particularly the VA Refund Modification. This option was not presented to me despite its availability, further adding to my concerns about the transparency and completeness of the options provided.

My mortgage is backed by the VA, which potentially makes the Government liable for circumstances that were fully preventable as I was proactively engaging with the mortgage company and doing everything that was requested of me.

9. Request for Call Transcripts : In my pursuit of truth and transparency, I humbly request the transcripts of the phone calls listed in CMG 's response. This would serve to corroborate my assertions that CMG may be misrepresenting the events in our interactions. Transcripts would provide conclusive evidence, offering a clear and unbiased perspective on the matter.

Company response to consumer: Closed with explanation