Consumer complaint received 2021-03-04
Company: Mr. Cooper Group Inc.
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I recently received notice from CFBP that my complaint ( XXXX ) was Closed after Respondent Nationstar/ dba Mr Cooper had submitted a response. 
It seems Nationstar dba Mr Cooper did not address the core of this complaint in that they took over one ( 1 ) year to send the required timely Reminder Notice as stipulated under the general scope of XXXX. 
It has been my contention that Nationstar dba MrCooper took over a year after receiving a reminder notice from my insurance company, XXXX that the coverage was lapsed and about to be cancelled on or about XX/XX/XXXX. XXXX had provided this letter to me indicating they sought payment for the insurance premiums from Citimortgage/ its successors and/or assigns - XXXX XXXX although the servicer name was changed, this letter was sent to the same PO Box address, however Nationstar/MrCooper declined to act and send required Reminder Notices Using the text of a CFBP example to paraphrase my question as to whether Nationstar/dba MrCooper neglected to send a timely reminder notice ... 

When a servicer ( Nationstar MrCooper ) is required to deliver or place in the mail the written notice pursuant to XXXX ( d ) ( 1 ), the content of the reminder notice will be different depending on the insurance information the servicer has received from the borrower. For example : ... Assume that, on XX/XX/XXXX, [ XXXX ] the servicer Nationstar/MrCooper places in the mail the written notice required by 1024.37 ( c ) ( 1 ) ( i ) to Borrower A. The servicer does not receive any insurance information from Borrower A. The servicer must deliver to Borrower A or place in the mail a reminder notice, with the information required by 1024.37 ( d ) ( 2 ) ( i ), at least 30 days after XX/XX/XXXX [ XXXX ] and at least 15 days before the servicer charges Borrower A for force-placed insurance. 

Argument : XXXX notified Nationstar/MrCooper on or about XX/XX/XXXX ( XXXX ) that there was a lapse of insurance coverage and is seeking payment for reinstatement. Had Nationstar/MrCooper sent Borrower a Reminder Notice on or about XX/XX/XXXX, Borrower would have had ample opportunity to rectified the oversight matter promptly as Borrower had done by responding promptly only going forward into XXXX, only after Servicer had sent the required Reminder Notice on or about XX/XX/XXXX ... thats XXXX of XXXX and NOT XXXX. It is apparent that Nationstar/MrCooper had overlooked a reminder from XXXX in XXXX of XXXX and delayed the required Reminder Notice to Borrower until a year later that resulted in exorbitant costly Forced Placed Hazard Insurance penalty fee and prohibited Borrower from obtaining a Reinstatement deadline from XXXX by XX/XX/XXXX ... thereby exceeding 30/15 day notice requirement under 1024.37 ( d ) ( 2 ) ( i ) by over one year. It should be noted that an individual Consumer can not lawfully purchase a post or back dated insurance policy to cover the lapsed period, therefore impossible to satisfy the mortgage company policy of continual hazard insurance coverage, this is why its essential these Reminder Notices are sent promptly. 
It is unknown how and or why Nationstar/MrCooper only came about in XXXX of XXXX ( XXXX ) to notice that there was a one year lapse of Borrowers insurance coverage and this was AFTER they were notified by XXXX in XX/XX/XXXX ( XXXX ), albeit different name but addressed to same postal location included in the name of Successors or Assigns ( ISOA ). Nationstar by admission states they did not get notified by XXXX, therefore did not notify ( a ) Borrower on or about XX/XX/XXXX. By that rational set forth by Nationstar/MrCooper to send late notices, they could have easily waited or overlooked for two, three, or ten years to finally decide to send a required Reminder Notice to a Borrower and assess multiple years of excessive penalties and fees upon a mortgage without any knowledge of lapses. 

Nationstar/MrCooper had the opportunity to comply with 1024.37 ( d ) ( 2 ) ( i ) but waited one year after the lapse of coverage and impending cancellation to discover this and sent an extremely late reminder notice, as well as an unchallengeable exorbitant assessment penalty onto the Borrower without any regard to circumstances by all parties. 
Nationstar/MrCooper acknowledged by written letter ( see attachment ) they did not receive any XXXX lapse coverage and or cancellation notice and thereby did not notify Borrower [ pursuant to 1024.37 ( c ) ( 1 ) ( i ) ], however this was not the case ( see attachment ).

Company response to consumer: Closed with explanation