Consumer complaint received 2019-03-07
Company: Caliber Home Loans, Inc.
State: CO
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
During our first loss mitigation, we were approved to make three trial payments ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/2018 ) We successfully made all three trial payments. We were sent a letter in between the second and third payments saying a title issue was discovered and we needed to submit a subordination form. We did, however we were still denied and started a second loss mitigation application. 

We have completed two trial payments and will make our third on XX/XX/XXXX. Again, were sent the same letter saying a title issue was discovered. This is not true, Caliber knew about the title issue from the first loss mitigation. 

U.S. Department of Urban Housing and Development Handbook 4000.1 Section III.A.2. 

5 ) End of Trial Payment Plan Period ( a ) Standard The Mortgagee must offer the Borrower a permanent FHA-HAMP Option after the Borrowers successful completion of a TPP. 

The Mortgagee must : prepare the permanent FHA-HAMP Modification Agreement early enough to allow sufficient processing time for the modification to be effective no later than the first day of the second month following the final Trial Payment Plan month ; provide the Borrower with the permanent FHA-HAMP documents to be executed by required parties at least 30 Days before the effective date of the modification with notification of the date by which signed documents must be returned ; sign the FHA-HAMP Modification Agreement and provide a fully ratified copy to the Borrower no later than 15 Days following receipt of the Borrower-signed documents ; and update its servicing system and files to reflect the FHA-HAMP transaction. 


On XX/XX/XXXX, we will be making our third and final trial payment for this second loss mitigation application. This will be the second time we have successfully completed the TPP. Why are we not receiving a modification agreement? Why did you approve the trial payments, and then send us the same subordination letter from the first loss mitigation application? 

We have submitted the subordination paperwork several times. What is the title discrepancy? Why will no POC specialist tell me what the discrepancy is? 

If the discrepancy is that we have a second lien, why are you approving loss mitigation applications, accepting trial plan payments, all the while knowing that our modification can never be approved due to having this second lien? 

If it is acceptable to have a second lien on an FHA title, then what is the title discrepancy you're speaking of? 

Section III.A.2. 

( I ) Lien Status The Mortgagee must, if required by state or federal law, record the Loan Modification documents to preserve the first-lien status of the modified FHA-insured Mortgage. 

( 1 ) Subordination Request If title to the Property is encumbered with an FHA Title I Mortgage and the Mortgagee servicing the Title II Mortgage has determined that a Subordination Agreement is necessary to ensure HUDs first-lien status, the Mortgagee may forward a subordination request to : U.S. Department of Housing and Urban Development Home Improvement Branch XXXX XXXX XXXX, XXXX, XXXX XXXX Washington, DC XXXX ( 2 ) Subordination Notification If title to the Property is encumbered with an FHA Title I Mortgage which has been assigned to the Secretary and the Mortgagee servicing the Title II Mortgage has determined that a Subordination Agreement is not needed to ensure HUDs first-lien status, the Mortgagee servicing the Title II Mortgage may send a written notification to : U.S. Department of Housing and Urban Development XXXX XXXX XXXX XXXX XXXX XXXX   XXXX  XXXX, NY XXXX Our lien with Impact Development Fund is the second lien. The FHA is the first lien. Why are we being denied a modification? We have provided you with the subordination form several times. How many times have you submitted a subordination request to the U.S. Department of Housing and Urban Development? 

Why are we being denied a modification when we have followed every request and rule set forth by the FHA and Caliber?

Company response to consumer: Closed with explanation