Consumer complaint received 2019-09-29
Company: RoundPoint Mortgage Servicing LLC
State: IL
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
XXXX XXXX XXXX XXXX XXXX XXXX IL XXXX XXXX ROUNDPOINT MORTGAGE ( MERS ) I filed a motion to vacate the foreclosure on my moms house after finding out through the XXXX county recorder of deeds MERS Mortgage Electronic Registration System illegally and fraudulently acquired the mortgage and sold it to Roundpoint Mortgage who are prominent investors in XXXX XXXX XXXX  all three of these organizations are connected throughout the country and have paid the government homeowners millions of dollars in settlements for pyramiding late payments forcing private insurance premiums and consistently constantly violated RESPA regulations I intend to prove with official documents that my mom owns and paid off her home in XX/XX/XXXX and was fraudulently led to believe she still owed and continued to pay for a home she outright owned since XX/XX/XXXXthis situation has effected her health way of life and livelihood causing her to become worried agitated and always worried about being removed from her home she resided at since XX/XX/XXXX Roundpoint Mortgage bullied intimidated and forced her for over 10 years with calls and mail threatening to take her home XXXX XXXX XXXX XXXX XXXX & XXXX ROUNDPOINT MORTGAGE NOR MERS never initially owned the mortgage and obtained it illegally Im asking the court to dismiss and vacate foreclosure return all of her payments immediately they are PROFITEERS NOT DEVELOPERS who prey on low income homeowners RoundPoint Mortgage services hundreds of DASP mortgages in XXXX through shell companies with names like XXXX XXXX XXXX XXXX or XXXX XXXX XXXX XXXX XXXX, all based out of the same anonymous North   Carolina office building. XXXX, a company with no listed phone number, no website and a single publicly disclosed employee has accumulated 46 properties in Philadelphia through foreclosure proceedings. 

It has flipped about 10 of those properties. In one instance, XXXX foreclosed on XXXX XXXX XXXX, a newly built townhouse in a middle-class neighborhood of Philadelphia, for just {$65000.00} in XX/XX/XXXX, two months after it had picked up the mortgage at a DASP sale. Another two months later, having made no major improvements to the property, XXXX resold the same house for {$170000.00}. 

These are in the minority of properties, however. In the majority of cases, private equity firms appear to mainly sit on the properties they accumulate, sometimes for years. If DASP buyers are renting out their new assets while they wait for home values to appreciate, many do not appear to be doing so legally : Out of dozens of properties owned by XXXX analyzed by City & State, none had received a rental license. 

City & State reached out to both HUD and  RoundPoint for comment on multiple occasions, but received no reply from either entity. 

XXXX councilmember XXXX said she believed this process is increasing the number of vacant and rental properties in urban neighborhoods, in addition to other stressors. 

When you have homeowners who are evicted or who lose their homes, that has dramatic consequences for a city like ours that already struggles with poverty, she said. We have affordable housing waitlists that take years and homeless shelters that are overcrowded. We cant fix it all. 

It doesnt have to be this way. XXXX  is part of Local Progress, a network of local elected officials that has pushed for reforms to programs like DASP. In XXXX, HUD announced that it would make an effort to steer more distressed mortgages to nonprofit buyers, who would ideally be more forgiving towards impoverished homeowners. Nonprofit mortgage buyers, known as community development financial institutions, or CDFIs, were previously outbid on 98 percent of DASP sales. 

Most recently Roundpoint violated the Fair Debt Collection Practices Act because it falsely represented XXXX debts in the mortgage billing statements, it threatened foreclosure, it disclosed information regarding the debt to credit reporting agencies, it used an agent to falsely communicate the loans status and then used deception to collect it, and italong with XXXXfalsely represented the legal character of the loan by representing that it could enforce it against XXXX ; ( 4 ) Roundpoint violated the Real Estate Settlement Procedures Act by not substantively responding to XXXX notice of errors ; ( 5 ) Roundpoint violated the Illinois Consumer Fraud Act because of its false claims regarding owed amounts, required fees, loan enforcement, foreclosure, and credit ; and ( 6 ) Roundpoint violated the Fair Credit Reporting Act  by divulging incomplete or inaccurate information pertaining to a loan

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation