Consumer complaint received 2022-08-25
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC)
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
Community Loan Servicing approved a forbearance plan on XX/XX/2021, with an effective date of XX/XX/2021. The loan was brought current to the effective date of XX/XX/2021 on XX/XX/2021, as I was unemployed from XX/XX/2021, until XX/XX/2021, and could not make the payments, which is why I requested and was approved for the forbearance plan. 

Per the CARES Act credit reporting was supposed to be as follows : ( ii ) REPORTING.Except as provided in clause ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or is not required to make 1 or more payments pursuant to the accommodation, the furnisher shall ( I ) report the credit obligation or account as current ; or ( II ) if the credit obligation or account was delinquent before the accommodation ( aa ) maintain the delinquent status during the period in which the accommodation is in effect ; and ( bb ) if the consumer brings the credit obligation or account current during the period described in item ( aa ), report the credit obligation or account as current. '' ( CARES Act, emphasis added at ( bb ) ). 

The date that the accommodation went into effect was XX/XX/2021, the payment of the mortgage was made through XX/XX/2021, which was the last due date before the accommodation was effective. 

I sold the property that they held the note and mortgage for, to complete the forbearance plan, but they had already transferred the note to a different servicer. During the forbearance plan, they had been incorrectly identifying my account as 60 days delinquent, despite it being brought to the effective date of the forbearance plan of XX/XX/2021. A payment on a mortgage can either be due or not due, it can not be relayed to the consumer as not due, and secretly due at the same time. I was never informed that they were considering my account delinquent by 60 days during the forbearance plan and reporting as such to the credit agencies, even after the loan was brought to the effective date of the forbearance plan. When researching the CARES Act, they make no mention of payments within the forbearance plan needing to be paid to bring the account current. Therefore, my account was brought current on XX/XX/2021, with successful payment of all payments due outside of the forbearance plan. Currently, Community Loan Servicing has provided to the XXXX XXXX XXXX that my loan was due for XXXX, XXXX and XX/XX/2021, which were under the protection of the forbearance plan, and no payment was due. If no payment was due, then they could not expect it to be paid to bring the loan current, if it was brought current up through the beginning of the forbearance plan, and no communication with the servicer attempted to collect payment for XXXX, XXXX and XX/XX/2021, therefore it could not have been due. 

During the entire forbearance plan, even after settling all payments due before the mortgage was put into forbearance, the loan was reported to the credit bureaus as 60 days delinquent, which starting on XX/XX/2021, was not true. It was current until the forbearance plan took effect. According to the CARES Act, if account is current when enter a forbearance plan, it is current throughout, if it is brought current during the forbearance plan, it is supposed to be reported as current, on the date that it is brought current. All payments that had been due before entering forbearance were paid on XX/XX/2021, all payments within forbearance were not due. Once the account was brought current, it should have been reported as such, based upon the effective date of the forbearance plan which was XX/XX/2021, despite requesting at the beginning of XX/XX/2021, being approved XX/XX/2021, before the payment for XX/XX/2021 was past due on XX/XX/2021, per the mortgage and note. Therefore, the loan was never thirty days past due, and forbearance was approved before XX/XX/2021, which was the last date to pay for XX/XX/2021, before being past due. 

I assert that a payment can either be due or not due. When I submitted a payment in XX/XX/2021, and XX/XX/2021, they went toward the months of XXXX and XXXX which were due before the forbearance plan became effective. By XX/XX/2021, no payment was due. Community Loan Servicing is asserting that I would have needed to pay XXXX, XXXX and XX/XX/2021 to bring the loan current, even though those payments were under the forbearance plan. Therefore, I assert, that this was in violation of the forbearance plan. They are not able to consider those payments to be due to bring the loan current when a forbearance plan was approved and in effect. If all payments up until the start of a forbearance plan are paid, the loan should be considered current, once all payments that were due before the forbearance plan are paid. No payments were due under the forbearance plan, therefore, they should not have been expected to be paid to make the loan current in the eyes of Community Loan Servicing, and they are not allowed to assert that they were due, now that I have requested them to correct the payment history they sent to the credit bureaus. 

They sent XXXX separate months of 60 days delinquent payments to all three credit bureaus, and never sent that as of XX/XX/2021, the loan was considered current, based upon all payments that were due up until forbearance were paid in XX/XX/2021. Therefore, I requested that they fix the payment history to reflect that while XXXX could be considered late, that XXXX XXXX XXXX could not. They have refused to fix the payment history, and my last correspondence with them claims that payments that were not due under forbearance were due to bring the loan current. This is unfair, as anyone who had completed payments up until forbearance was agreed to were considered current, but even though I brought it current to when the forbearance plan started, which according to the CARES Act they should have also started to report as current at that time, they continually reported as late, which destroyed all of my credit scores, even though forbearance was supposed to protect against that, and I did everything I could once I received my notice that I would be unemployed to get my account to the date right before forbearance was approved, and I did, and was still punished by XXXX XXXX XXXX because they claim that payments that were not due under the forbearance plan, were due to bring my account current. I want them to fix the payment history that they sent to the credit bureaus. I acted in good faith by applying for protection and was unfairly punished.

Company response to consumer: Closed with explanation