Consumer complaint received 2021-01-23
Company: Specialized Loan Servicing Holdings LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
In XX/XX/2020, I went into Forbearance due to COVID hardship. The referenced mortgage was in forbearance for a total of 3 months ( XXXX, XXXX and XX/XX/2020 ). Around the end of XXXX, I reached out to SLS to determine my available options for repayment. Attached you will find the payment plan that was agreed upon ( SLS Repayment Agreement ). I agreed to pay 6 equal payments of {$1600.00} from XXXX to XX/XX/2020. On the day of my payment plan agreement, I made my first payment for the month of XXXX ( see SLS Payment Confirmation ). I have made every single payment per the agreement ( See XX/XX/XXXX Statement as well as SLS Mortgage Statements ). My mortgage was also current as of XX/XX/2020 before forbearance began ( see XX/XX/2020 Statement ). XX/XX/2020 Statement shows total amount owed at the end of forbearance. Each statement will show a lower past due amount as I made all of my payments per the repayment plan. On the XX/XX/2020 statement, you will see that my past due amount is zero. 

Here is the problem. 

On XX/XX/XXXX, I applied for pre-approval with XXXX XXXX auto finance and was denied. I was confused as to why. My DTI was good, and my credit score was about 750+. I later received a letter from XXXX XXXX stating my adverse action reason as 1 or more delinquent Mortgage account. Ive since misplaced that letter but attached the denial email from XXXX XXXX that does not have the adverse action reason. Upon receipt of that letter, I checked my XXXX XXXX credit, only to see that they did not report my XXXX payment nor my XXXX payment. I immediately called SLS to understand what was going on and I could not get any straight answers. The rep did agree that they were falsely reporting delinquent even though Ive made all of my payments. A ticket was opened with their credit resolution team to investigate the issue. I called several times to get a status update on the issue and received nothing. On XX/XX/XXXX, I was asked to share info on my credit report through their email, which I did. Again, for the next few weeks, I continue to find time during my working day to call and sit through all their automated messaging, only for someone to tell me they had no update. In the beginning of XXXX, I guess when the delinquency was accounted for, my credit score dropped 85 points. 85 POINTS. Still no resolution. I received an email through my SLS portal on XX/XX/XXXX stating that they had no idea what my complaint was about, so I needed to call again and repeat the entire process. This is why I am submitting this CFPB complaint. As I am writing this complaint, I pulled my credit report from all Bureaus and as of today, there is a comment about being {$2700.00} past due ( See attached credit Bureau reports for SLS ). If you look at my statements, that was the past due amount on the XX/XX/2020 statement, due XXXX because of the forbearance. Again, I was on a repayment plan, so it shouldnt have mattered. On my XXXX  report, it actually shows that delinquency started back in XXXX of 2020 during forbearance. I planned on refinancing my home, but certainly can not do that now. This has severely impacted me and if it isnt resolved, it will cost me a lot of money in finance charges over the next 7 years. I CAN NOT have this on my credit any longer. 

If they failed to report the payments I made over those months and marked my account as delinquent, that is a grave violation of FCRA. If they counted my forbearance amount as delinquent even though we agree to repayment terms, that is also a violation of the CARES Act credit reporting guidelines : https : //www.consumerfinance.gov/about-us/blog/protecting-your-credit-during-coronavirus-pandemic/. But that doesnt not make sense as they would have marked XXXX and XXXX as delinquent. Whatever the reasoning is, it never should have happened. My on-time payment percentage was 100 % prior to this.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation