Consumer complaint received 2019-07-23
Company: Mr. Cooper Group Inc.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I continue to be very dissatisfied with Mr. Coopers handling of escrow waiver process. The reasons are : 1. Terms of the original XXXX XXXX dated XX/XX/XXXX predates XX/XX/XXXX, when Consumer Financial Protection Bureau finalized Truth in Lending Act. The escrow requirement was twelve months prior to XX/XX/XXXX. I have never made a late payment in nine years and one month. 
2. Mr. Cooper has not sent a written instruction for escrow waiver in three business days as required by 15 USC Chapter 41, Subchapter I ; Consumer Credit Cost Disclosure, Chapter 41 Consumer Credit Protection. Mortgagees written and verbal requests dated as far back as XX/XX/XXXX and filed under NYS  XXXX case # XXXX and XXXX are acknowledged but offering a clear pathway to complete the escrow waiver process. The letter arrived on Saturday, XX/XX/XXXX could not have never been sent on the letter date, XX/XX/XXXX. USPS first class is expected to arrive in 1-3 business days1. The letter does not meet the instruction requirement under the Act. 
Furthermore, the letter imposes state unreasonable condition on the mortgagee and is inconsistent to phone instruction provided on XX/XX/XXXX by XXXX, the manager. I was told verbally that I could remit escrow balance and mortgage payment in a single payment to anyone in the call center. If call center refuses, I would be able to reach out to her department to complete the waiver and payment. Rather than responding to emails on XX/XX/XXXX and XX/XX/XXXX, XX/XX/XXXX and phone call on XX/XX/XXXX, Mr. Cooper opted to have you ( XXXX ) send a letter to state the draconian new compliance condition. 
This newest hurdle is consistent with tactics used previously to delay escrow waiver. The never ending loop to ensure that mortgagees will not meet escrow waiver conditions is intentional. 
The new hurdles included three components : 1. Refuse to accept my payment for {$3600.00} on Mr. Coopers payment system or via phone. This amount is equal to escrow balance + mortgage. As result of its refusal, I had to make payment for XX/XX/XXXX using my banks online payment system, which took two days to process, after Mr .

Cooper rejected it initially. The payment sat unapplied in Mr. Coopers account. Mr. Cooper has also assessed a late payment penalty. 
2. Claiming that I owe {$4500.00}, including {$620.00} and XX/XX/XXXX mortgage and escrow payment of {$3800.00} is a new condition. I dont know of any loan that requires overpayment of this magnitude ( 6 times the disputed amount ) before one can settle a term modification. The revised instruction also contracts with verbal instruction given on XX/XX/XXXX. 
1 XXXX XXXX XXXX 3. No evidence exists on Consumer Financial Protection Bureau website or in Dodd-Frank Act Title XIV to show that a seven to ten days waiting period is required by applicable law. 
Prior Mr. Coopers efforts included the following : 1. Prepaying my hazard insurance ahead of normal schedule honored in previous years by Mr .

Cooper or its predecessor, XXXX. As result, the prepayment put my escrow account in deficit, a condition to refuse waiver request. 
2. Stating my property is a two family. XXXX XXXX terms from the original XXXX mortgage dated XX/XX/XXXX did not impose the 2-4 family rule. 
3. Failed to provide escrow waiver disclosure in writing and in three business days. 
3. Mr. Cooper inappropriately applied XXXX XXXX and Truth in Lending Act. They do not make escrow a mandatory requirement once the following conditions are met by the mortgagee : 1. Financially qualified. I have made payment on time for nine years and one month consecutively, even during XX/XX/XXXX when I entered this dispute with Mr. Cooper. This month, Mr. Coopers tactic instigated the XX/XX/XXXX penalty. 
2. Debt to equity ratio surpassed minimal requirement. The initially balance in XX/XX/XXXX was {$600000.00}, debt to equity ratio of 76 % of equity. It is currently {$470000.00} or 61 % of equity. 
3. Not a high-priced mortgage in XX/XX/XXXX, XX/XX/XXXX ( loan mod reduced the rate to 3.65 % ) or XX/XX/XXXX. 
4. Not a jumbo loan in XXXX County in XX/XX/XXXX,XX/XX/XXXX, or XX/XX/XXXX. See # 3 ( 2 ) for initial balance. 
5. The loan is a 30-year fixed mortgage. Balloon payment term is not applicable. 
6. Surpassed escrow account period requirement under pre and post Truth in Lending Act, one year for before or five years for after. XXXX XXXX does allow mortgagee to waive escrow. 
4. Expected outcome 1. {$3600.00} in Mr. Coopers possession should be applied immediately to fund escrow balance and XX/XX/XXXX mortgage payment. 
2. Remove late payment penalty assessed on XX/XX/XXXX. 
3. Mortgagee credit history remained intact, with no report of late payment or penalty. 
4. XX/XX/XXXX and future statements show mortgage only, {$3000.00} per month. 
5. Implement escrow waiver disclosure in three business days as required under applicable law. 
Call Centers verbal response that the case to research is in violation of Truth in Lending Act. 
This is reported to XXXX XXXX and Consumer Financial Protection Bureau as of XX/XX/XXXX. 
6. All future written correspondence must be also sent electronically on the letter date. The envelop must include a date stamp, no pre-sorted postage. After months of dealing with Mr .

Cooper, I have sufficient evidence to make the claim that letters are not sent on letter date. 
Mr. Cooper needs to own its back offices unprofessional behavior so the front line trying to do the right thing are side swiped.

Company response to consumer: Closed with explanation