Consumer complaint received 2021-07-07
Company: Mr. Cooper Group Inc.
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Our mortgage loan was sold to Mr. Cooper in approximately XXXX. We have made our regularly monthly payment on time each month. Beginning in XXXX of XXXX, we began making additional principal payments to amortize the mortgage more quickly. For the first few months it was only an additional {$200.00} or so. In XXXX, we started increasing the additional principal to around {$1600.00}. For the first month or two, it was being applied correctly, but as I was making the XXXX payment online, I noticed their system showed my payment due for XX/XX/XXXX, not XX/XX/XXXX. In looking back at the payment history, Mr. Cooper had reversed the payments we made and applied them as a regular monthly payments not giving us any credit for the additional principal. I called several times and spent several hours on the phone trying to get it fixed. They assured me it was rectified. I made the XXXX and XX/XX/XXXX payments ( in Mr. Cooper 's online system ) with additional principal and then started getting calls from them asking when I would make my XXXX payment. I assured them I had made the payment ( with additional principal ). They initially could not find the payment, but eventually did locate the funds. At this point, I went back to their online system and found that someone had retroactively adjusted my payments back to XX/XX/XXXX. By doing this, they are removing the extra principal payments ( thereby charging more interest than is owed ) and pushing out the " next payment date '' each month. 

After having spent another hour or two on the phone, I was told the issue was fixed and their system hierarchy was changed to apply excess funds to principal and not apply as the next payment due. For XXXX, XXXX, and XXXX, it appeared the payments were being applied correctly with the appropriate additional principal applied. As I logged in on XX/XX/XXXX to make the payment, I noted my next payment due was for XXXX. I looked back at the payment history and again Mr. Cooper had reversed and reallocated my payments for XXXX, XXXX and XXXX of XXXX. As a result, they show my principal balance as being approximately {$4000.00} higher than it should be. 

I am in the real estate finance business, so I understand how mortgages and mortgage payments work. I fear the average person would not likely have picked up on what was wrong and would be paying more in interest than is legally owed. This is effectively prohibiting prepayment of the mortgage and amounts to a systemic predatory lending practice. I have repeatedly tried to work this out with Mr. Cooper and have been told each time it would be fixed. I logged in again today XXXX XX/XX/XXXX XXXX to see if the adjustments had been made. Not only had they not fixed the issue, the payment for XX/XX/XXXX was reversed and applied as a standard payment. My loan now shows due for XX/XX/XXXX rather than XX/XX/XXXX. I made the XXXX payment through their online system which allows for an additional principal payment. I did this with a Mr. Cooper representative on the phone telling me that is how it should be done. I have a download of the payment history in which you can see all the reversals of payments. Its become so confusing that it is nearly impossible to follow. I have also prepared a spreadsheet showing how the payment should have been applied. The result is that Mr. Cooper has my loan balance at {$54000.00} when it should be approximately {$51000.00}. I say approximately as I cant exactly replicate the interest portion and due to all the payment reversals, I cant use Mr. Coopers data. I would very much like to discuss this with someone.

Company response to consumer: Closed with explanation