Consumer complaint received 2023-02-21
Company: Mr. Cooper Group Inc.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Charging late or default-related fees in CARES Act forbearance programs.The CARES Act generally prohibits a servicer of federally-backed mortgage loans from imposing these fees while a borrowers mortgage payments are being deferred due to financial hardship caused by the COVID-19 emergency. Refuses to give terms and conditions, pushing toward refinancing when rates have increased exponentially. Owned by XXXX XXXX, the did not offer the options for deferral, they wouldnt explain the process until I called them out. It is a fema rule to allow payments to be added to the end of the loan.. 
Failing to end preauthorized electronic fund transfers. Otherwise known as EFTs, some servicers failed to end automatic electronic payments when an account had been closed, often resulting in additional and repeated fees when borrowers had insufficient funds in their banking account. I paid my mortgage payment XX/XX/XXXXXXXX they auto drafted it from an account that was closed XXXX, I made the payment from my XXXX XXXX   app directly to the lender, nationstar/r/Mr. Cooper,,, Mr. Cooper overcharged for services and added fees outside of their loan terms, ,for example late fees when payments werent late, in fact payments were made for XXXX months in advance. 
Misrepresenting mortgage loan transactions and payment history in online accounts. Examiners found that servicers provided inaccurate descriptions of payments and transaction information, which may have misled borrowers. Ive been working on and analysis all evening it is one hot mess! 
Incorrect handling of partial payments. Servicers are required to take one of the following specific actions when they receive a partial payment from a borrower : crediting the payment, returning it to the consumer, or holding it in an unapplied funds account. Mr. Cooper put these funds in the escrow account, this was for flood insurance I have with my HOA, I send them proof at least 3 times a year as they continued to charge for flood insurance, Im on calls once a week for 2-3 hours, no one keeps records of previous calls and Im required to explain the situation, then Im passed around to 3 or 4 reps. They have been holding funds since XXXX! it since., according to your website, they are not supposed to put these payments in borrowers escrow accounts rather they should be returning the amount or crediting it to borrowers next monthly payment. I was told they couldnt do it, they had to mail a check, then Id have to call and void it, this is archaic and meant to harm the borrower. Im so stressed out over this, hence the XXXX XXXX complaint Im sending right now. 
Failing to automatically terminate XXXX Mortgage XXXX ( PMI ) on time. For borrowers with PMI, servicers are generally required to automatically terminate those additional PMI payments once the mortgage loans principal balance is first scheduled to reach XXXX percent of the original value of the property. Examiners found that in many cases the servicers data was inaccurate, and the PMI wasnt terminated in a timely manner.I have been trying to XXXX t them to cancel the flood insurance since XXXX! Not happening, each rep gives me different stories Predatory lending!

Company response to consumer: Closed with explanation