Consumer complaint received 2020-01-22
Company: RUSHMORE LOAN MANAGEMENT SERVICES LLC
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Date : XX/XX/XXXX Mortgage Loan Servicer : Rushmore Loan Management Services XXXX XXXX XXXX XXXX, CA XXXX From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NC XXXX. 

Property Address : XXXX XXXX  XXXX XXXX  XXXX XXXX, NC XXXX Ref : Unethical, Deceptive and Unfair Mortgage Loan Lending Practices Mortgage Loan Number : [ XXXX ] I am writing to request investigation on the following unfair mortgage lending practices described below with regard to the mortgage loan on my property at XXXX XXXX XXXX, XXXX  XXXX, XXXX, NC XXXX. I purchased my property on XX/XX/XXXX nearly 14 years ago at a cost of {$100000.00}. Unfortunately, the loan was transferred to Rushmore Mortgage loans several years ago. Since then the principal owed continues to increase despite payments made. Since then I have paid over {$93000.00} as mortgage payment and due to the balloon payment strategy implemented by Rushmore Mortgage Loans, the principal amount currently owed still stands at over {$90000.00}. 


Unethical, Deceptive and Unfair Lending Practices 1. Rushmore has repeatedly imposed excessive unjustifiable fees and interest rate charges on my mortgage loan thereby taking advantage of me as unsophisticated elderly borrower. This has made the terms of my mortgage loan with Rushmore difficult or impossible to payoff the principal amount on the loan. For instance, the outstanding principal payment on the loan which was {$86000.00} in XX/XX/XXXX has increased and has now exceeded {$90000.00}. Rushmore Mortgage loan has failed to make certain disclosures that could justify the needless increase of the principal on my loan amount. While my original loan of {$100000.00} had interest rate of 5 percent, I have been charged over {$11.00} per day as interest payment to my mortgage loan which is higher interest rate than the original interest rate I was promised, this is in violation of the TILA ( Truth in Lending Act ). In addition, all accrued interest and other fees including attorney fees are being added to my principal. Rushmore has also added late fee that is greater than 4 % of the past due payment. Rushmore has fraudulently and deceptively created balloon payment strategy in violation of HOEPA ( Home Ownership and Equity Protection Act ). As a result, the terms and benefits of my mortgage loan were grossly misrepresented to me. As a result of these unethical actions by Rushmore, I am currently facing foreclosure. For example, my total payment of {$33000.00} made in XX/XX/XXXX has the following breakdowns : a. Principal Payment -- -- -- -- {$4300.00} b. Interest Payment -- -- -- -- - {$14000.00} c. Escrow Payment -- -- -- -- -- - {$4700.00} d. Fees -- -- -- -- -- -- -- -- -- -- -- -- -- -- {$490.00} e. Recoverable Advances -- -- {$9700.00} TOTAL MORTGAGE PAYMENT ( Year=XX/XX/XXXX ) = {$33000.00} 2. Rushmore Mortgage Loan has repeatedly imposed excessive  points and fees during the life of my loan by failing to disclose the true costs and risk associated with my mortgage loan. 

3. Rushmore Mortgage loan has attached my mortgage loan with an expensive hazard home insurance policy even though my home already had hazard home owner insurance coverage policy with XXXX XXXX. These charges have increased my monthly payment by a large amount. I therefore believe that I am entitled to a refund of excess funds in my escrow account and I have not received them. 
4. Rushmore was deceptively working with me on loan modification options while proceeding with foreclosure without proper notification. This is in violation of Federal law that restricts dual tracking. 




If you need to contact me, I can be reached at XXXX Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation