Consumer complaint received 2023-07-28
Company: RoundPoint Mortgage Servicing LLC
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My mortgage was transferred to Roundpoint Mortgage last year, and at the time of transfer, I had just finalized a loan modification with my previous servicer ( XXXX XXXX ) following XXXX related forebearance. When my loan transferred to Roundpoint, I tried to make payments that were due under the mortgage modification with XXXX, but Roundpoint rejected my payments. Every month when I called Roundpoint to make a payment, I spoke to a Roundpoint representative who told me that Roundpoint had not " finished processing '' my mortgage modification, and that I could not submit a payment until my " account was updated. '' Roundpoint refused my payment for three months and then sent me a notice saying they were foreclosing on my house. Ultimately, Roundpoint forced me to reapply for loan modification through them, resulting in my modified loan payment becoming significantly higher than under my original agreement with XXXX XXXX. During this process, each time I called Roundpoint, the representatives I spoke with provided false and misleading information about what was happening with my loan- it was not until I received a foreclosure notice that I even found out Roundpoint had simply refused to process the loan modification paperwork from XXXX, and had lied to me about what was happening with the loan modification process for three months, each time I called to try to make my payment. XXXX finally processed my loan modification application that they required me to submit through them, and I made my first of three " trial payments '' for my loan modification in XX/XX/2023, second payment in XX/XX/2023, and third payment in XX/XX/2023. Each payment was made on time. 

On XX/XX/2023 my basement flooded and I submitted an insurance claim. I worked with insurance to complete repairs. When I became aware, through my insurance company, that I would need to have Roundpoint sign off on one of the insurance checks, I notified Roundpoint of my insurance claim by telephone. The agent I spoke to explained the process of sending the check for endorsement to Roundpoint, and said that since I had completed all of my trial payments and that the " trial period '' for my loan modification was over, I should simply send the check to Roundpoint, they would endorse it, and then send it back to me. In XXXX I sent the check to Roundpoint for endorsement. Approximately two weeks later, I received the check back from Roundpoint unendorsed. I called Roundpoint again. The agent I spoke to this time said that Roundpoint had elected to treat my mortgage as if it was more than 30 days past due, because my " modification process had not been completed. '' I told her she was incorrect, and that I had made each of three payments on time during my trial period. She said that Roundpoint had not finished processing the modification by XX/XX/2023, and therefore Roundpoint was electing to treat my mortgage as if it was more than 30 days late, triggering a far more complicated process for submitting my insurance check to Roundpoint and receiving the funds. On Tuesday XX/XX/2023 I sent Roundpoint all of the additional documentation they chose to require after choosing to " treat my mortgage as if it was more than 30 days delinquent '' because of their failure to timely process the loan modification, along with the endorsed check, by XXXX XXXX. Roundpoint did not acknowledge receipt of the check or materials. On Tuesday, XX/XX/2023, I sent Roundpoint an email asking that they immediately schedule my home for an inspection ( which " may '' be necessary only if your mortgage is more than 30 days past due, which Roundpoint had " elected '' to " treat '' my mortgage as, despite that it was not ) and to explain to me in writing when and how my insurance funds would be disbursed. Roundpoint did not respond. On Thursday XX/XX/2023, I sent Roundpoint another email asking that Roundpoint respond, in writing, and tell me whether an inspection is necessary now, how to schedule it, and when and how they will be releasing my insurance funds. Roundpoint did not respond. On Friday, XX/XX/2023 I received a phone call from Roundpoint but did not receive a message. I again emailed Roundpoint and asked them to respond IN WRITING and explain to me when and how they will release the insurance funds to me. Roundpoint has not responded.

Roundpoint has caused my insurance payment to increase with their negligent treatment and failure to honor the modification agreement I had entered into with XXXX XXXX prior to my loan being transferred to Roundpoint. Roundpoint has caused my modification process to be delayed by several months, and despite that I timely completed all payments within the trial period, Roundpoint failed to timely process the NEW modification agreement they required me to execute with them. Roundpoint then used the delays they caused to " treat '' my mortgage " as if '' it was more than 30 days late, to wrongfully refuse to endorse my insurance to check, to wrongfully obtain my insurance proceeds, and to wrongfully withhold them from me. Roundpoint representatives provide false and misleading information to me each time I speak to them on the phone, and Roundpoint refused to provide documentation of our phone calls or to communicate with me in writing. Roundpoint has refused to schedule an inspection they " may '' or " may not '' require to disburse my insurance proceeds, and will not tell me when or under what conditions they are going to give me the insurance proceeds that I am entitled to.

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