Consumer complaint received 2021-12-03
Company: LoanCare, LLC
State: OR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My mortgage servicing was transferred from LoanCare to XXXX XXXX Servicing effective XXXX XX/XX/2021. LoanCare would not acknowledge the date of transfer, and continued to press me for the payments due XXXX and XXXX, which I made as directed to XXXX XXXX XXXX. Then they reported me to the credit bureaus for non-payment in violation of the XXXXday grace period around such transfers, after repeatedly telling me they would not take that action. They continue to insist the transfer happened after the XXXX payment due date, though a representative did disclose in XXXX phone call ( recorded by them ) that the date of transfer was in fact XXXX. 

The full timeline of events and documents : -- XXXX : XXXX LoanCare statement after origination, indicating initial payment due XXXX. 

-- XXXX : XXXX LoanCare statement, indicating payment due XXXX, also showing some escrow activity. 

-- XXXX : Notice from XXXX XXXX XXXX XXXX XXXX XXXX that ownership of my mortgage has been transferred to XXXX XXXX XXXX XXXX effective XX/XX/XXXX, and as of XX/XX/2021 my new servicer will be XXXX. 

-- XXXX : Dated XXXX but mailed before then. Separate notice from XXXX that my servicing of mortgage is being transferred effective XXXX, and that any payments after XXXX should be directed to XXXX and not to XXXX. As my first payment is due on XXXX, that means all payments should go to XXXX. 

-- XXXX : First payment to XXXX, not for the full XXXX balance because of incorrect information provided by XXXX ( note I've not had any problems dealing with SPS ). 

-- XXXX : Notice from XXXX to change my insurance to list them as the mortgagee. 

-- XXXX : Paid the remainder of the first month 's balance to XXXX, XXXX. 

-- XXXX : Statement from XXXX shows the XXXX payment has been made, and a balance due for the next payment on XXXX. 

-- XXXX : Second payment to XXXX, for the XXXX balance due XXXX. 

-- XXXX : LoanCare called and left an automated message asking for payment. 

-- XXXX : LoanCare called and left an automated message asking for payment. 

-- XXXX : LoanCare called and left an automated message asking for payment. 

-- XXXX : Called LoanCare and asked them to verify the transfer. The claimed no knowledge of it but said they would look into it. 

-- XXXX : Called LoanCare again to follow up. Got no imformation worth writing down. 

-- XXXX : LoanCare reported a late payment to the credit bureaus. I did not find out about this until XXXX. There is a XXXX-day grace period which they told me about, and have clearly violated. 

-- XXXX : LoanCare called and wanted documents proving I had made the payments to SOS ( even though XXXX themselves never claimed that I didn't ). I sent them an XXXX statement, other XXXX screenshots, and XXXX bank statements ( UCCU and maps ). 

-- XXXX : I got both LoanCare and XXXX together on a conference call. This was the first time LoanCare admitted there was any transfer at all, but claimed the transfer was on XXXX, and thus they should I should have sent them the payments. XXXX claimed that the transfer was on XXXX. " XXXX '' at LoanCare advised me to keep making payments to XXXX, that the scheduled release on XXXX is within a 60-day grace period, and that everything should be resolved by XXXX. 

-- XXXX : XXXX called and left an automated message asking for payment. 

-- XXXX : Received written notice back-dated XXXX, from LoanCare that my mortgage is being transferred, effective XX/XX/XXXX. 

-- XXXX : Called LoanCare. An automated voice at the beginning of the call informed me that the balance on my loan was XXXX. When I got a peron on the line, she told me " the account was transferred as of XXXX first, '' implicitly acknowledging that XXXX was right and LoanCare was wrong all along. 

-- XXXX : Notice from Loancare back-dated XXXX, actually postmarked XXXX, telling me I have missed XXXX mortgage payments, and that my account is 38 days past due. : -- XXXX : Received another dunning notice from LoanCare, this time back-dated to XXXX. It continued to show XXXX missed payments, stated " you are in : default of your loan, '' and threatened to report me to credit bureaus ( no mention of the promised XXXX grace period ). It also included " tips to avoid foreclosure, '' which I take as a threat. 

-- XXXX : Complaint filed with Oregon XXXX. No action from them so far. 

-- XXXX : Called LoanCare, demanding written assurance that I owe them nothing, and that they will not report me to any credit bureaus, or that if they have already done so they will have them reversed. They said that they have informed the agencies that I am " involved in a dispute, '' but no mention of missed payments. This is the first I heard of them having said anything at all to credit agencies. 

-- XXXX : Emailed (? ) statement from LoanCare that doesn't show anything useful, It has a " XXXX XXXX XXXX '' of XXXX, which is the monthly payment amount, but nothing in the ledger showing it having been paid by me ( which it wasn't ) or transferred by XXXX ( which it might have been ). 

-- XXXX : Despite assurances that they would not make any adverse reports to credit bureaus during a XXXX-day grace period, and written acknowledgement from XXXX than my account was closed before with no outstanding balance efore that grace period expired, I find out that my credit score has dropped over XXXX points because of an account with a past-due balance. 

-- XXXX : Downloaded my credit reports, verified that the LoanCare account is the only XXXX listed as having " adverse information, '' and is said to be " 30 days past due date. '' Accordin to XXXX, this information was updated on XXXX, before the end of the promised XXXXday grace period. 
So even if I owed them anything ( which I clearly do not ), it should not have been reported. It also shows payments due for XXXX, XXXX, and XX/XX/XXXX. There was never a payment due in XX/XX/XXXX, and even if I assume : that's that payment due on XXXX, there should not be a payment due from XXXX in XX/XX/XXXX ( which would be XXXX, after everything was fully transferred ). XXXX also shows a payment past due, with a date of first delinquency of XXXX, reported on XXXX. 

-- XXXX : Called LoanCare again, to demand that they retract this late payment report that had lied about not having made. The first person I talked to noted that " a request is already open '' and " due to be resolved, '' and that it can take up to 30 days. Presumably, this came from the XXXX call. After letting her know this was insufficient, I was transferred to a manager. " XXXX '' claims the report of a missed payment doesn't fall under the XXXX-day grace period, because the mortgage didn't transfer until XXXX ( a variation on the XXXX date that I usually hear from them ). I informed her that I was told on XXXX that my loan was transferred " as of XXXX XXXX, '' and she said she would review the calls, and get back to me with the status of that and of the credit bureau status .

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