Consumer complaint received 2023-06-26
Company: Mr. Cooper Group Inc.
State: NJ
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
In XXXX XXXX XXXX I put my house in Forbearance due to XXXX difficulties at that time my payments were current and the loan was in good standing. On XX/XX/XXXX I filed a complaint due to the XXXX company reporting for 15 consecutive months to the credit reporting agencies that my loan was 90 days delinquent for 15 straight months. You intervened and the XXXX responded with file 0033719428_RESP tc.pdf ( attached the closed complaint # XXXX ) admitting the mistake and rectifying it with the credit reporting agencies. 
On XX/XX/XXXX I filed complaint # XXXX which details the following Complaint : I was in forbearance during COVID and entered into a loan modification agreement with my lender. I was given a payment schedule of three payment to make of approx ~ XXXX. They do not have automated payment methods. I called in to make the first payment in XX/XX/XXXX ( the phone call was recorded ) and the person told me that I had XXXX} in suspension ( I made a partial payment during the forbearance period ) and that I could apply it towards my first payment. I asked her at least three times if that was true and she said yes, so i authorized an ACH payment oXXXX XXXX ( which combined with the XXXX  was more than enough for the initial payment ). I called in XXXX and made a full payment of ~ XXXX and it was processed from my bank account. In XXXX when I called to make the third and final payment they told me that the agreement was breached for a missed payment on my part and that the agreement was cancelled. I explained what the lady told me and they researched it and got back to me acknowledging the mistake and informed me that she was wrong that a payment in suspension could NOT be used towards a payment. I explained that I was prepared to make a full payment when I called in and would have done so had she not directed me in this manner. At this point I have been on the phone with them XXXX times for over XXXX hours and each time they tel me it is reinstated and then I get letters to the contrary. I have escalated to no avail and at this point they are telling me tht I have to reapply for a loan modification and start all over. The big issue with that is that my current interest rate is 4>65 % and I have a lender that is willing to refinance it down to 2.24 % which will reduce my payment by ~ $ XXXX but this cant be done until I am officially out of forbearance and it is reported as such. Please help as this company seems to be hamstrung by systemic issues and are not willing to fix their mistake. 

The company responded ( see document 0033719428_RESP.pdf ) and admitted the error. 

Subsequently 2 mos later I filed the below complaint : I filed complaint # XXXX with the CFPB approx 2mos ago and was immediately contacted by the XXXX company. They called me three different times and said that they take my complaint seriously and that it has been assigned to the " Office of the Customer '' and that I have a personal person in charge of it ( they never gave me a name or direct phone number for that person, the number they gave goes to their call center ). The person I spoke with acknowledged the mistake in my complaint as well as the letter they sent and said that they are working on my COVID relief loan modification and that they will fix the problem on their end immediately and that I should receive a new loan modification in 30 days. I asked them multiple times if there was anything I needed to do ( new paperwork etc. ) and they said no XXXX XXXX this is our error and we have all of your info and we will send out your new payment and terms in 30 days. It has been over 30 days now and I have been contacted by XXXX to begin a new loan modification process/paperwork. When I called in to inquire they do not seem to know what is going on. It was escalated to a guy named XXXX who actually looked into the problem and said that he believes he sees what the problem is ( they tagged my loan as a new loan modification instead of a CARES act COVID relief modification ) however he can not resolve it. He claims he escalated to the office of the customer and they should take care of it. Yesterday XXXX called me to say they received the complaint are reviewing whether or not I need to submit a whole new package, here we are back to the beginning again and I am afraid these people are going to try to take my home and foreclose on me. Furthermore I should have been able to refinance my home for a much lower rate ( I am currently at 4.625 % and I have been quoted 2.5 % ) which would save me ~ $ XXXX month back in XXXX. Now the rates are going back up and who knows if I will ever be able to take advantage of this and then I lose out for the next 30years which could end up costing me hundreds of thousands of dollar 's please help. 

Their response on XX/XX/XXXX is summarized as follows : They offered me a correction but said I would need to pay the XXXX that was in suspension that they were unwilling to apply to the loan ( stating I would get a refund once the loan was out of the trial period ) and the final payment of XXXX ( I was making bi-weekly XXXX payments instead of monthly payments ) for a total of XXXX and I would need to pay this immediately to continue with the current loan modification. I expressed my displeasure and said I could pay the {$1500.00} but that I did not have the additional {$2700.00} and would need to take the option to start over. They stated that it would take up to 30 days to recalculate the Loan modification and send me out the new agreement. 

From XXXX to XXXX of XXXX I have never received any new paperwork regarding a new loan modification per the cares act or COVID relief, they kept insisting that is was being processed and would be sent out soon but I never received it. In XXXX of XXXX I received notice that Mr. Cooper is taking over as the servicer of this loan. I talked to Mr. Cooper and told them about all of my issues and they said they would look into it. There response was that they were working on a loan modification for me and would send it out. In XXXX of XXXX I was finally approved for a Loan Modification ( which I have signed and mailed back in to avoid, foreclosure, threats, and put my credit back in good standing ). The loan modification has increased my interest rate from 4.265 % to a whopping 7.125 % thus increasing my mortgage payment over {$1000.00} a month which in unaffordable for me. Since my last payment my local taxes have decreased from XXXX to ~ $ XXXX a year which should significantly reduce my escrow payment as well but instead I am going from a previous monthly payment of ~ XXXX to a new payment of ~ XXXX. Not too mention if this error had never occurred and my original loan mod had gone as planned and communicated I would have been able to refinance my loan at 2.5 % at that time which would have enable a payment with the reduction of taxes to around $ XXXX with escrow and now I am paying double that, please help as I am extremely disenfranchised here and I feel like this company has taken advantage of the pandemic and my unfortunate circumstances.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation