Consumer complaint received 2020-05-07
Company: LoanCare, LLC
State: AZ
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/2020 Loancare was paid in full on a 3 years of servicing a Mortgage Loan, which was purchased from XXXX. This Loan is a VA IRRL Refinance. The money was wired to them on XX/XX/2020.  Loan appears paid in full. XX/XX/2020 asked how long escrow would take - estimated 10 business days. Called on XX/XX/XXXX reconfirmed I saw no activity to roll additional overpayment of interest ( paid 3 days prior to the payoff quote ending date of XX/XX/2020 ) in  addition to a small overpayment by the title company - about XXXX. The running ledger of my account still showed the payoff information as paid and {$0.00} as the current balance. The new loan holder has the account currently. First payment is XX/XX/2020. I logged into the account on XX/XX/2020to check status, it was day 11. To my surprise a post dated entry appeared. ForeclsurePartialRepayPrinBal {$370.00} under interest. When I spent 3 hours on the phone with 2 separate reps, they were mystified. The best they could offer was a review request and a escalation ticket. I was told someone was working this issue and that I would get a call back. I called XX/XX/2020, after getting no pro-active call, I asked to speak to management. I was told I could not email this person directly, have her phone number and all I could do was email general repository to provide management with my experience and concern. The person indicated this entry was a XXXX XXXX payment - Loancare 's interest payment to the investor. That she isn't sure why it's coded that way and that I should't worry. Well that's not a good enough banking answer, when pressed she indicated a banker had called in 4 hours prior with the same concern. To net this out : My payment history with them is my information that should not be tainted by an entry that doesn't represent the transaction properly. There is a truth in lending requirement and coding something foreclosure partial payemnt is not the correct coding for a investor payment. It creates mistrust, it creates concern for credit standing, it creates a deficiency in documentation and prohibits me from using an accurate representation moving forward of my payment history if I were to use and print my own payment history. It currently does not reflect the truth in ledger posting. Therefore, I would like this journal entry backed out and re entered properly with the correct description to reflect what it is. A letter emailed and sent acknowledging the error in description to the payment and accurately identifying what the payment was. I would like a call from their executive team. VP of default administration or Senior VP of Loan conversion and escrow. I would like this issue ideally resolved in 24 hours byXX/XX/2020 XXXX PST - from the time I spoke to middle management. Since Loancare is owned by XXXX, which is a XXXX XXXX company I feel that this fix should be relatively easy for them to achieve not just for myself buy globally to their other customers that have experienced the same impact - potentially all refinanced loans in 2020. I would anticipate this has impacted more than 2 people - myself and the banker who called in regarding his own account ( as recounted by the Loancare member I spoke with ). It was an acknowledged problem with no  current solution. Expunging it is the most ideal scenario and or reposting correctly with a letter to explain the error and a phone call of ownership.

Company response to consumer: Closed with explanation