Consumer complaint received 2017-02-11
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Debt collection
Sub-product: Mortgage
Issue: Taking/threatening an illegal action
Sub-issue: Seized/Attempted to seize property

Complaint:
I am informed and believe that Bank of America owns my mortgage. As a result B. of A. is responsible for the actions of the servicer through an affiliated business agreement/ relationship or joint marketing agreement with either XXXX and/or XXXX, and all debt collectors including third parties. B. of A. must provide clear answers to the attached Qualified Written Request in Declaration form such that they are not deceiving or form a debt collector. ( See attached PDF file Request for Information.pdf ). 

In conjunction with XXXX and other affiliates/joint marketing partners, Bank of America, promoted forbearances as a way to help mitigate my hardship. XXXX of the collection letters stated the following : " ... We want to work with you to find a mutually agreeable way to resolve the delinquency and avoid foreclosure. Depending on your circumstances, we have several mortgage assistance programs available that may help you. XXXX is a proud participant in the Federal Government 's Making Home Affordable Program ( MHA ), which includes several mortgage assistance options depending on eligibility. We may also have other options that may be able to help you. These additional options, which may not be available to everyone, include : Repayment Plans or Special Forbearances : With this program you could receive payment options for a limited number of months to give you time to resolve your financial difficulties, or give us time to work together on a more permanent solution. 

Under Regulation XXXX, a loss mitigation option means an alternative to foreclosure offered by the owner or assignee of a mortgage loan that is made available through the servicer to the borrower. XXXX XXXX XXXX. This includes " refinancing, trial or permanent modification, repayment of the amount owed over an extended period of time, forbearance of future payments, short sale, [ and ] deed-in-lieu of foreclosure ... '' XXXX XXXX. XXXX, XXXX. I, comment XXXX. 

The Special Forbearances XXXX offered were loss mitigation options under Regulation XXXX XXXX XXXX. XXXX. Under regulation XXXX a loss mitigation option means an oral or written request for a loss mitigation option that is accompanied by any information required by a servicer for the evaluation for a loss mitigation option. XXXX XXXX. XXXX. 

My request for a Special forbearance was a loss mitigation application under XXXX XXXX, XXXX XXXX XXXX. If a servicer receives a loss mitigation application from a borrower regarding a mortgage loan secured by a property that is a borrower 's principle residence, the servicer must " exercise due reasonable diligence in obtaining documents and information to complete [ the ] loss mitigation application. '' XXXX XXXX 
XXXX XXXX XXXX XXXX ). 

If a servicer receives a loss mitigation application 45 days or more before a foreclosure sale, the servicer also must, within 5 days ( excluding legal public holidays, Saturdays, and Sundays ) of receiving the loss mitigation application, provide a written notice acknowledging receipt and stating, among other things, if the loss mitigation application is incomplete, " the additional documents and information the borrower must submit '' to complete his or her loss mitigation application. XXXX XXXX XXXX XXXX XXXX ) ( XXXX ). 

However XXXX has not exercised reasonable diligence in obtaining documents and information necessary to complete a loss mitigation option. Specifically, when XXXX receives a loss mitigation application, XXXX failed to, as required under Regulation XXXX ( XXXX ) exercise reasonable diligence in obtaining documents and information necessary to complete the application. XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ). 

Therefore for such conduct XXXX and B. of A. violated RESPA, XXXX XXXX XXXX XXXX., and of its implementing XXXX XXXX XXXX XXXX XXXX XXXX ) ( XXXX XXXX, XXXX XXXX XXXX ) ( XXXX 
( Complaint continued below under Desired Resolution )

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