Consumer complaint received 2022-09-14
Company: LoanCare, LLC
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XX/XX/XXXX, I inquired with XXXX XXXX ( my mortgage lender at that time ) regarding a forbearance under the CARES Act XXXX in anticipation of my wife being XXXX XXXX in XX/XX/XXXX. I was not aware that during my inquiry it was the beginning of my forbearance as I was not informed by the representative and I just made my XX/XX/XXXX payment. I was informed that my loan terms will resume after 12 months of forbearance with my missed payment added in the back end of the maturity term. For the next 12 months starting in XX/XX/XXXX, I was in forbearance with XXXX XXXX  After the 12 months period, I was informed by XXXX XXXX to resume my payment on 1st of the month under trial payment plan for 3 months ( XX/XX/XXXX- XX/XX/XXXX ). I was confused by this but complied with their trial payment plan. After making my first payment in XX/XX/XXXX, I received a letter stating that my loan was transferred to LoanCare , LLC. I called LoanCare , LLC to make a payment per XXXXXXXX XXXX unwritten term. LoanCare , LLC stated that they will rectify any issues that XXXX XXXX made as soon as they receive all the records. I continued to call every month to request a status of my request of Partial Claim under the VA Partial Claim Program. LoanCare , LLC continued to inform me that they do not have the complete records. LoanCare , LLC received my records in XX/XX/XXXX which at this time the lender informed me that they are still working on my request. This same information was relayed to me as I call in every month to make my payment. It was at the end of XX/XX/XXXX when I called to make my XX/XX/XXXX mortgage payment that they informed they did a Loan Modification. The Loan Modification is not a Partial Claim that I have requested despite of them stating that I was not approved for Partial Claim. I have called the VA in which LoanCare , LLC reported a forbearance requests ( which was approved ) from XX/XX/XXXX - XX/XX/XXXX. This forbearance was NOT requested by me as I made my monthly payment. LoanCare , LLC also reported to the VA that a loss mitigation letter sent to me in XX/XX/XXXX, which I never received because they kept stating they do not have ALL my mortage records from XXXX XXXX ( previous lender ). Also, LoanCare , LLC did NOT apply for a VA Partial Claim on my behalf as they informed me I was not approved. The Loan Modification terms is resetting my remaining 25 years back to 30 years, and my rate of 2.75 % ( which I purchased a few years back ) is increased to 3.50 %. This is not the terms that I was informed and agreed with XXXX XXXX  under the CARES Act of XXXX forbearance of VA Loan. This loan modification of LoanCare does not lower my monthly payment which is what a loss mitigation supposed to be. All it does is that it resets my loan terms and increase my monthly payment from my original. I have asked LoanCare , LLC to process and submit a VA Partial Claim which they have not.

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