Consumer complaint received 2021-03-10
Company: Mr. Cooper Group Inc.
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My complaint is that my loan balance has been increased and thereby the amount of interest I have paid has been increased due to Mr. Cooper improper accounting practices. 
Mr. Cooper has arbitrarily reversed principal payments and misapplied my monthly payments for no apparent reason preventing a reduction in the balance of my loan causing interest to accrue on an invalid balance, thereby charging me interest they are not entitled to. In addition, Mr. Cooper charged unwarranted late fees, I have never been late on a payment, which also falsely increasing my balance and charging additional interest. When they reversed some of the late fees and some of the principal payments, they did not reverse the interest charged for the amount the fee increased my loan balance. 
Mr. Copper also did not credit my loan for the interest that was charged for the reversed principal payments when they reapplied the payments. In addition, Mr. Cooper did not reverse all late fees charged. The late fees amounting to {$130.00} has been added to my loan balance and is accruing interest. The amount of interest Mr. Cooper charged on the reversed, arbitrarily misapplied principal payments and late fees is unknown. 
My records show I have paid additional principal payments of {$5600.00} towards the principle of my loan balance since XX/XX/XXXX. However, Mr. Cooper has not credited me for that amount and refuses to provide me with an accurate accounting of my account and show me that I was not charged interest on erroneous balances. 
I called the Mr. Cooper in XX/XX/XXXX. The rep I spoke with told me that there was some sort of computer glitch that caused a late payment and they would reverse it. She assured me that it was not reported to the credit bureaus and that fees would be reversed, I would not be charged interest on the late fees and that my principle would be corrected to reflect my correct additional payments. 
I never received any proof that I was not charged interest on either the late fees or the portion of the reduction in the loan balance that would have been caused by the principal payments. Nor have I received proof that I was not erroneously reported to the credit bureaus. 
After talking to ten different employees, some more than once, over several months I still have no resolution. As a matter of fact, it has just gotten worse. 
I have requested a complete accounting of all monies paid to Mr. Cooper, how it was applied and a breakdown of interest paid on the unpaid balance since XX/XX/XXXX to no avail. Mr. Cooper has provided various accountings, none of them have the same dates for the transactions, and there has been no breakdown of the interest I have been charged for balances caused by Mr. Coopers accounting mistakes. Instead, Mr. Cooper has charged late fees, reversed them, then recharged them and changed my principle to the point, I am not sure they know what the accurate balance or what balances I have paid interest on. 
I am sure I have been paying interest on a balance that does not reflect the reduction in principle my payments would have made if applied correctly. 
While attempting to resolve the issue Mr. Cooper has misapplied my principal payments several times, reversed out a principal payment of {$1700.00} on XX/XX/XXXX without ever crediting it back to me, have inappropriately charged me late fees when I have not been late and have not reversed them out twice. In addition, according to their records I have a {$500.00} in unapplied fund that was also reversed and been charged interest on the inappropriate late fees and the misapplied principal payments for months. 
Starting with our XXXX statement billing : Our XX/XX/XXXX statement : XX/XX/XXXX we made a Principal payment of {$1900.00} Our XX/XX/XXXX Statement : XX/XX/XXXX Reverse Principal payment of {$1900.00} for no apparent reason Our XX/XX/XXXX Statement : XX/XX/XXXX Principal payment of {$450.00} XX/XX/XXXX Payment reversal of {$1600.00} for no apparent reason XX/XX/XXXX statement : XX/XX/XXXX Late charged assessed We have never been late on a payment XX/XX/XXXX Statement : XX/XX/XXXX Adjusted fees ( late fee ) {$65.00} XX/XX/XXXX Late Charge Assessed {$65.00} ( Please note we have never been late and the next payment on this statement is XX/XX/XXXX, How can there be a late fee? ) XX/XX/XXXX Late Charge Assessed {$65.00} ( Again, please note we have never been late and the next payment on this statement is XX/XX/XXXX, How can there be a late fee? ) When I began asking about the accounting, Mr. Cooper commenced sending me documents. I am attaching some of them. There are too many, most of which are quite confusing to put here. Please let me know if you would like them and I will send them as well. 

I am including the ones that I can best explain here.

Supporting Document, one provided by Mr. Cooper shows that they charged us late fees nine times and only credited us seven times thereby increasing our balance, and erroneously increasing the interest we paid for an untold amount of time.

Page 1 : Twice on XX/XX/XXXX we were charged Fees of {$65.00} for total of {$130.00} ( two different transactions ) Then twice on XX/XX/XXXX Mr. Cooper did a fee payment reversal of {$65.00} for a total of {$130.00} ( two different transactions ) Page 2 Then again twice on XX/XX/XXXX Mr. Cooper charged us fees of {$65.00} for a total of {$130.00} ( two different transactions ) Then again twice on XX/XX/XXXX Mr. Cooper did a fee payment reversal of {$65.00} for a total of {$130.00} ( two different transactions ) Then again twice on XX/XX/XXXX Mr. Cooper charged us fees of {$65.00} for a total of {$130.00} ( two different transactions ) Then again twice on XX/XX/XXXX Mr. Cooper did a fee payment reversal of {$65.00} for a total of {$130.00} ( two different transactions ) Page 3 Then again twice on XX/XX/XXXX Mr. Cooper charged us fees of {$65.00} for a total of {$130.00} ( two different transactions ) However, this transaction was never credited back to us. 
Then on XX/XX/XXXX we were charged Fees of {$65.00} Then on XX/XX/XXXX Mr. Cooper did a fee payment reversal of {$65.00} Supporting XXXX XXXX is a complete enigma to me. It does not reflect the figures that I have on my statements. I would attempt to explain the transactions, however, the accounting is so convoluted, I do not know how.

Page 1 : XX/XX/XXXX Mr. Cooper reversed a principal payment of {$1700.00} with no explanation with no documentation as to when it would be credited back to our loan. As far as I can tell the principal payment of {$1700.00} has never been credited to my loan balance. 

XX/XX/XXXX there are an additional forty transactions of credits and debits all on the same day. 

Page 2 : XX/XX/XXXX XXXX transactions on the same day for fees ( late fees ), monthly payments, escrow, principal payments and then reversal of a principal payment, an escrow deposits, and principle. 

XX/XX/XXXX Eight transactions of monthly payments, escrow deposit and principal payments and reversals of monthly payments, escrow deposits and principal payments. 

XX/XX/XXXX Twelve transactions on the same day for the same types of transactions payments and reversals. 

XX/XX/XXXX Thirteen transactions all on the same day for monthly payments, escrow deposit and principal payments and reversals of monthly payments, escrow deposits and principal payments. 

XX/XX/XXXX One transaction for a payment reversal. 

Page 3 : XX/XX/XXXX Thirteen transactions for monthly payments, escrow deposit and principal payments and reversals of monthly payments, escrow deposits and principal payments. 

XX/XX/XXXX Four transactions for additional principle, additional principal reversal, monthly payment and monthly payment reversal. 

XX/XX/XXXX Two transactions for additional principle and monthly payment. 

XX/XX/XXXX Two transactions for additional principle and monthly payment. 

XX/XX/XXXX One transaction monthly payment. 

XX/XX/XXXX Two transactions for monthly payment and additional principle. 

XX/XX/XXXX Two transactions for monthly payment and additional principle. 

XX/XX/XXXX XXXX transaction for monthly payment. 

My XX/XX/XXXX Statement please note Mr. Cooper reversed my principal payment of {$1900.00} My XX/XX/XXXX statement please note Mr. Cooper reversed two principal payments one for {$1000.00} and one for {$2600.00} My XX/XX/XXXX statement please note Mr. Cooper charged a late fee deducted a late fee from my payment and reversed a late fee, even though I have never been late, and credited then reversed principal payments and loan payments. 
My XX/XX/XXXX statement please note Mr. Cooper charged me a late fee XXXX times even though I have never been late on a payment. On this statement it states that my next payment is due XX/XX/XXXX. So how could I be late? 
Please note that on my XX/XX/XXXX statement Supporting Document 3, my next payment is due XXXX, XXXX, yet I was charged a late fee for XX/XX/XXXX and credited for a late fee on XX/XX/XXXX. 
In all the documents Mr. Cooper has sent me or posted online there has been no clear or accurate accounting of the balances I was being charged interest on. My contention Mr. Cooper has used overwhelming documentation to charge me more interest than they are legally entitled to. 
Mr. Cooper has not been helpful resolving this issue. Each time I call they are more concerned about whether I have been financially impacted by Covid-19 than they are about my misapplied funds. 
I need your help to get to the bottom of this accounting nightmare! It appears that they are making every effort to prevent me from paying down the principle on the loan by misapplying my payments on the principle on my loan. 
Also Mr. Cooper has not made it clear what impact the reversal of payments and the reinstatement of payments has made on the daily balance and therefore the interest we are being charged. 
I have included documentation of some of the documents that. 
Thank you for your time and assistance on this. I really do appreciate it!

Company response to consumer: Closed with explanation