Consumer complaint received 2023-02-24
Company: Mr. Cooper Group Inc.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Many homeowners faced financial hardship during the times of covid-19 and its impact on the world. During that time many homeowners were allowed to miss mortgage payments due to the government mandating that a forbearance be allowed in periods of 3 to 6 months at a time with a maximum of up to 18 months. Most homeowners who have a mortgage often have their loan managed by a loan servicer. I'm a homeowner who has my mortgage serviced by Mr Cooper, Mr Cooper has been my loan servicer from XXXX to XXXX. My mortgage was transferred to XXXX XXXX in XX/XX/XXXX. I clearly understand that a servicer only manages my loan and payments but is not the company whom I originated my loan agreement with. 
I say that to say this, Mr Cooper & XXXX XXXX XXXX have unethically managed my payments by reversing transactions and or placing the funds in other or escrow resulting in no reduction of my principal. My concern comes from the arrear amount that was deferred during the time when my mortgage was in a forbearance state of up to 18 months. Mr Cooper alleges that my deferred amount is {$26000.00} ; however, this is not true as {$7600.00} of that amount was reported by Mr Cooper as amounts owed for escrow. 
In XXXX Mr. Cooper transferred my monthly mortgage payments made in XXXX, XXXX, & XXXX to escrow & other totaling {$7600.00}, therefore they have received the payment they claim I owe. The amount is not true and inflated, I have 1098 statements to prove they did not pay {$7600.00} out in escrow costs in XXXX or XXXX. 
Because so many homeowners were faced with losing their homes due to a reduction in income as a result of covid-19, the government then came out with the Mortgage assistance program in which each state was to develop a system/program to disperse the funds directly to the loan servicer, not to the homeowner. 
Because this program was brand new several problems occurred for the end user trying to apply online with the platform that was created. Nonetheless, I applied in XXXX and was approved in late XXXX. 
The program did change the qualifications from the 1st time I applied up to my approval in XX/XX/XXXX. 
It started in XX/XX/XXXX, stating that any amounts that were deferred, meaning that a homeowner did not have the money to pay the total deferred amount due and did not accept a modification resulting in the deferred amount being placed at the end of a loan. This also meant that if a homeowner planned to refinance or sell their home, the deferred amount must be repaid prior to any transaction resulting in a change of ownership or sale. 
By XX/XX/XXXX, the rules changed and I was sent an email stating that I should reapply as I may now qualify and that coming soon funds would be available to cover deferred arrearages. 
I applied and here is where the fraud happens. Mr. Cooper already transferred {$7600.00} the amount stated I owe on my deferral agreement dated XX/XX/XXXX. To qualify for the program it is required that an applicant send in their most recent mortgage & escrow statement in order to determine the amount needed to bring the account current. My current statement still shows my deferred amount to be {$26000.00}, which is not true as I have explained above. The correct amount should be {$18000.00} equal to 18 months of missed mortgage payments. I have notified the mortgage assistance program on this matter, however, I have reason to believe that my concern will fall upon Deaf ears. This is clearly fraud. The loan servicer should not be able to receive funding twice, moreover steal from the homeowner, and get away with it. 
I pray that what I am trying to convey is clearly understood. I bring attention to the matter now because it looks like the servicer will get paid twice and I, the homeowner will not get the {$7600.00} back to reduce the balance on my principle. 
My point and concern is to blow the whistle on mortgage loan servicers who are taking advantage of homeowners who faced financial hardship by exploiting funding meant to help and hurt. They took advantage of those loans placed in forbearance by offering trial repayment plans at that time to make things appear ok only to later not apply any of the payments made under the trial payment plan to reduce the principle. The trial payment plan was explained to me by a Mr. Cooper employee that my 3 months of trial payments were considered to be a fee and do not count as payments to reduce the principle balance of my loan, therefore that was the reason the payments were recorded as other and not towards interest or principle reduction. 
In XXXX escrow paid out {$2600.00} and in XXXX escrow paid out {$3200.00} totaling {$5900.00} for both years combined. Where did Mr. Cooper come up with the figure of {$7600.00}? Fraudulent activity attempting to steal money from government funding by not updating the deferred amount owed ( reducing it by {$7600.00} ) in an attempt to be paid twice. 
Heres why {$18000.00} is the correct deferred amount to be repaid. Mr. Cooper did in fact transfer my mortgage payments made in XXXX, over into an escrow adjustment as stated on the document titled, POSTED PAYMENTS ( uploaded-titled MRC-Payment ). My payments made in XXXX, XXXX, & XXXX of XXXX, were credited to Other or Escrow totaling over {$8000.00}. 

I want to bring attention to this matter because I do not see the mortgage servicers doing the right thing by adjusting the deferred amount owed to reflect the true amount of {$18000.00} and not {$26000.00}. 

To demonstrate even further I have also uploaded a copy of my 1098 end-of-year statement from XXXX & XXXX. 
XXXX annual cost for property taxes {$1900.00} & hazard insurance {$680.00} total {$2600.00} XXXX annual cost for property taxes {$2000.00} & hazard insurance {$1200.00} total {$3200.00} The cost of both XXXX & XXXX together do not equal the {$7600.00} amount claimed by Mr. Cooper that I owe in escrow/other costs. If unpaid the facts are that both ( XXXX & XXXX ) years added equal {$5900.00}, not {$7600.00}. 

The evidence I have provided should make it clear that Mr. Cooper is engaging in fraudulent accounting practices. I have already called attention to this matter with Mr. Cooper and it has gone unresolved. I am trying to bring attention to this loan servicer and not aid them to engage in more fraudulent behavior and moreover get over on homeowners who have been financially affected by the pandemic. 

I pray that what I am saying is clearly understood by the individual reading this statement and moreover taken seriously enough to investigate further to prevent others from being scammed. 
I know that I am not special in that I am the only person this has happened to while experiencing payment deferrals during times of Covid-19. 

In closing, I ask that you demand Mr. Cooper explain what the posted payment of {$7600.00} on XX/XX/XXXX, under escrow adjustment is for, being that the amount is {$24.00} less than the {$7600.00} listed under, other past due amounts to be deferred on the Payment Deferral Agreement dated XX/XX/XXXX ( uploaded ).

Company response to consumer: Closed with explanation