Consumer complaint received 2017-06-14
Company: NATIONSTAR MORTGAGE LLC
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have had my mortgage for approximately 13 years, and had never made a late payment. I have always had my mortgage on an auto-draft, where the mortgage servicer would automatically withdraw the appropriate funds when a payment was due. I never made a late payment, and as a matter of fact, had near perfect credit with a middle FICO score of XXXX. That is until Nationstar mortgage screwed up my payment and ruined my credit. <P/>On XX/XX/XXXX I decided to change bank accounts from which my payment would be drawn. According to the Nationstar website, the auto-payment was successfully set up for withdrawal from the new account. In addition, I received a confirmation email from Nationstar stating that the auto payment was set up successfully. Nationstar gave me every indication that my long standing account was set up properly, and that auto payments would be made on time. Unfortunately, they did not give me the correct information. <P/>Over the next four months, I never received any letters from Nationstar indicating a payment was late, or was in arrears. However, I did receive approximately 20 letters from Nationstar solicitating me to refinance my loan. I was later told by four different representatives of Nationstar that if my loan was late, I should have received calls from their payment department. I never received any late letters, nor did I receive any calls. <P/>On XX/XX/XXXX I called Nationstar to inquire about refinancing to a 15 yr fixed. I spoke to XXXX, and was absolutely shocked to learn that my loan showed two late payments. XXXX stated that the XX/XX/XXXX payment was never recorded, but that XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX were made automatically and on time. My account had accrued late charges, and mortgage lates had been reported to the credit bureaus. XXXX said told me that it was Nationstar 's fault, that he would reverse the charges and request his supervisors retract the late payment reports from the credit bureaus. XXXX said I needed to make two payments online to bring my account current, and that it needed to be done before a refi could take place. I asked XXXX if autopay was set up, and he confirmed that it was, hence the auto-pay payments made XX/XX/XXXX through XX/XX/XXXX. I immediately made the payments on-line. This call was recorded by Nationstar. I also spoke with a Nationstar rep regarding the refinance. He offered a rate of 3.5 % plus approx {$2000.00} in rate discount fees for a HARP loan, with the only documentation required was one month 's bank statements, and the declaration page of my homeowner 's insurance. No other documents would be required. <P/>On XX/XX/XXXX I spoke with XXXX XXXX, VP Nationstar Consumer Affairs, who confirmed that I should have received letters and calls. He believed that that the mix up in the system was due to changing the ACH auto payment accounts. He told me he would forward the information to a supervisor. Neither XXXX or a supervisor followed up with me. I have this call recorded. <P/>On XX/XX/XXXX I spoke with a competing mortgage broker to compare rates. They offered 3.25 % and a {$750.00} ysp rate credit. They contacted me the next day to inform me that they could not offer me that rate, as Nationstar had  reported two recent mortgage lates. Apparently, XXXX 's supervisor had not reversed the reporting. <P/>On XX/XX/XXXX I again called Nationstar, and spoke with supervisor XXXX XXXX. XXXX was thorough, and researched the issue. He confirmed that even though the system confirmed that my autopay was successfully set up in XX/XX/XXXX, it never charged my account for a XX/XX/XXXX payment ( even though it confirmed a successful setup ). He also told me that the system had cancelled my autopay on XX/XX/XXXX, and per the system this was per a customer request from XX/XX/XXXX ( six months later? ). I never requested that my autopay be cancelled, yet again, Nationstar charged me another late fee. Nationstar 's system cancelled the autopay, I did not. XXXX also told me that it appeared XXXX had attempted to make a credit to my account back in XX/XX/XXXX, but he could not find that it was made. XXXX also said that XXXX did not follow protocol to reverse the mortgage lates. XXXX said that notices of late payments were sent to my inbox that I could have accessed had I logged into my on-line account, which I did once in seven years. He also told me that their records indicate that I requested zero communication from them during my talk with XXXX. This is not true, I requested all advertising stop, not any notices regarding my account. I have a recording of this call. <P/>To the best of my knowledge, I am current on my mortgage and have reinstated autopay. However, Nationstar, by the fault of their system has caused me harm. I have made every good faith effort to pay them on time, yet they have charged me late fees and have reported me as late to the credit reporting companies. Their reporting me late has prohibited me from refinancing my home, a home that I had never made a late payment on before dealing with Nationstar.
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I request the following actions from Nationstar : 1. Reverse all late fees charged to me account.
2. Reverse all reports to the credit bureaus that any late payments were made.
3. Refinance my loan on a 15yr fixed at 3.25 %, r
ate and term, with a ysp credit of {$750.00}, on a HARP loan. These are the terms that I could have received if Nationstar had not been in error.
<P/>
Again, I had perfect credit up until this issue. I never in my life had a late mortgage payment. I made every good faith effort to pay Nationstar on time, and in full for every payment. They failed to notify me that there was any issue per their own procedures.

Company response to consumer: Closed with explanation