Consumer complaint received 2023-10-06
Company: Mr. Cooper Group Inc.
State: WI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
From the moment a person files a XXXX  XXXX bankruptcy petition ( Petition Date ), a loan supported by a mortgage must be treated as if it is current. Once a debtors XXXX XXXX plan is confirmed, the debtors regular ongoing mortgage payments should be applied from the Petition Date based on the mortgage contract terms and original loan amortization as if no default exists. All pre-bankruptcy arrearages are paid separately under the XXXX XXXX plan as part of the creditors allowed claim. In essence, the creditors claim is split into two claims the underlying debt and the arrearages ( although a creditor is only required to file one Proof of Claim as discussed below ). This can often be inconvenient for a creditor as it may have to create a separate account within its own system, but it is imperative that the payments be applied correctly to avoid being liable for improperly applying the payments, resulting in the penalty of sanctions. 

Mortgage loan payments should be applied for all XXXX  XXXX debtors as follows : Payments from the trustee or debtor post-confirmation should be applied to payments due from the Petition Date going forward not to the arrearages. All postpetition installment payments must be applied and credited to the debtors mortgage account as if the account were current and no prepetition default exists ( this includes any adequate protection payments received pre-confirmation ). 
Because an arrearage claim is basically a separate claim, the trustee or debtor should note that the payment is for the arrearages when it is sent. When the trustee or debtor notes the payment is for arrearages, then that payment can go toward the arrearages. 
The attached 105 letter Lenea clearly states they applied current contractual payments to prepetition missed payments accounted for separately in the filed claim ( s ). 
CFPA has been forced to litigate mr cooper for the very same actions you have admitted doing. You had 200 % annual escrows and applied payments wrong. 
CFPA would agree I am due compensation. 
RESPA and the XXXX are federal consumer financial laws. 12 U.S.C. 5481 ( 12 ), ( 14 ). Under Section 1036 of the CFPA, it is unlawful for any covered person to offer or provide to a consumer any financial product or service not in conformity with federal consumer financial law, or otherwise commit any act or omission in violation of a federal consumer financial law. 12 U.S.C 5536 ( a ) ( 1 ) ( A ). Violations of RESPA and the XXXX are therefore violations of the CFPA. Id. 
VIOLATIONS OF RESPA 83. RESPA and its implementing regulation, Regulation X, pertain to certain acts and practices related to federally related mortgage loans, including servicer requirements related to notice of error and complaint resolution. 84. The loans impacted by the allegations herein are federally related mortgage loans Prayer for Relief The Bureau, pursuant to Sections 1054 and 1055 of the CFPA, 12 U.S.C. 5564 and 5565, and the Courts own equitable powers, requests that the Court : 1. Permanently enjoin Defendant from committing future violations of the CFPA, RESPA, and XXXX, and enter such other injunctive relief as appropriate ; 2. Award such relief as the Court finds necessary to redress injury to consumers, including, but not limited to, rescission or reformation of contracts ; refund of moneys ; restitution ; and payment of damages or other monetary relief ; 3. Award such relief as the Court finds necessary to disgorge Defendant of unlawful gains ; 4. Award civil money penalties against the Defendant ; 5. Award costs against the Defendant ; and 6. Award additional relief as the Court may deem just and proper.

Company response to consumer: Closed with explanation