Consumer complaint received 2017-10-31
Company: NATIONSTAR MORTGAGE LLC
State: LA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Im filing a complaint regarding the matter of escrow distortion and multiple accounting errors, which have forced my account into a delinquent status for more than 1 year. 

These issues have caused damage to my XXXX major credit reports ; have increased interest rates to all of my credit cards and initiated reductions to all of my lines of credit, as well as overall trade line scores, all which are contributing factors and violations to the Fair Credit Reporting Act XXXX FCRA XXXX as a consumer. Said Act compels Nationstar/Mr. XXXX XXXX XXXX ) and connected third party vendors to insure the information they gather and distribute is a fair and accurate summary of a consumer 's credit history. 

My issues started shortly after the loan servicing transferred from XXXX XXXX to XXXX on XXXX XXXX, XXXX. According to a phone discussion with XXXX agent XXXX ( Ext. XXXX XXXX on XXXX XXXX, XXXX, there was a force-placed insurance policy which was added to the account. The exorbitant costs associated with flood insurance dramatically increased the loan escrow, causing extreme payment shock in relation to my monthly payments which increased from {$690.00} to {$1100.00}, virtually overnight with no warning. In fact, my loan amounts would go on to change five ( 5 ) times before finally settling at its present amount of {$670.00}. I was not notified in advance of any of these dramatic changes nor was I sent anything in writing with an explanation as to why. This is in direct violation of the Real Estate Settlement Procedures Act ( RESPA ) and the Fair Debt Collection Practices Act ( FDCPA ), as well as a multitude of statues under the revised Dodd-Frank Act of 2009, Pub.L. 111203, H.R. 4173. 

The fact of the matter is, prior to NSM imposing the forced-place policy against our mortgage account, we emphatically rejected the assumption made by XXXX, which suggested that we needed flood insurance to begin with. Its also a fact that we provided written documentation from the XXXX XXXX XXXX XXXX XXXX XXXX XXXX on multiple occasions that outlined the upgraded levy sanctions and protected geographical locations of our home in its respective parish. XXXX neglected to verify my explanation and documentation which provided reasoning as to why my mortgage loan was not within a flood zone. However, XXXX still proceeded conspired to force my loan into default. 

NSM ignored XXXX documentation, and our family has been harmed financially as a result of an unwarranted flood protection policy against our loan. The purpose of XXXX attempting to force my loan into default is a XXXX part response : A. XXXX receives commission kickbacks from these High Premium Force-placed Polices. When XXXX is able to force polices onto consumer loans with no challenge, their profits increase greatly based on the number of homeowners that fail to object to these increases and simply pay the demands or face default on the loan. 

B. Any loan which is government sponsored allows XXXX to add in additional foreclosure junk fees such as for property inspections, broker price opinion BPO reports, late charges, home evaluation reports, and the list goes on. Once these fees are imposed against the account, XXXX can foreclose and file a claim with the Federal government to pay off the defaulted loan along with all of the illegitimate fees placed against the account during the foreclosure processes. These acts of treachery are duplicated by NSM and mortgage servicers of the same kind hundreds of thousands of times a day. XXXX is required to make full disclosure escrow adjustments and anytime the loan has been transferred from a previous servicer. Escrow abuse is a violation of RESPA 12 U.S. Code 2605 section ( B ) refund to the consumer all force-placed insurance premiums paid by the borrower during any period during which the borrowers insurance coverage and the force-placed insurance coverage were each in effect, and any related fees charged to the consumers account with respect to the force-placed insurance during such period. Section ( m ) Limitations on force-placed insurance charges ) - Servicing of Mortgage Loans and Administration of Escrow Accounts and Basic Principles of the Fair Debt Collection Practices Act ( FDCPA ) in general. 


From the dates of XXXX XXXX, XXXX until XXXX XXXX, XXXX, our loan was negatively impacted with several payment adjustments, with payments fluctuating from {$690.00} to {$1100.00} to {$1000.00} onto {$810.00} to {$700.00} and finally to {$670.00}. 

At one point in XXXX of XXXX XXXX, began to place our payments into an unapplied suspense account, which made it appear that we had refused payment, when in actuality payments were being withheld from posting to our account with no explanation. This distortion ultimately led to XXXX demanding a large payment in the amount of {$2600.00}, otherwise our loan would be foreclosed upon. XXXX See Exhibit B ) The amount of {$2600.00} which XXXX was demanding required that payment be made by XXXX XXXX, XXXX, which implies that considering payments are due on the 1st of each month ; the demand amount would bring current the months from which XXXX is claiming to be delinquent from XXXX until XXXX of XXXX. Although our family paid {$2600.00}, on XXXX XXXX, XXXX, to my knowledge XXXX also had monies in suspense of at least {$690.00}. Meaning that XXXX, had collected more than enough money on order to bring my account current to XXXX of XXXX. XXXX XXXX Exhibit C ) At this point, our loan is still showing delinquent for the month of XXXX XXXX, according to XXXX staff and agents. Please also note that the amount that I paid in XXXX XXXX of {$2600.00}, does not reflect as such on my payment history. XXXX See Exhibit A ). Currently, XXXX staff and agents claim that my loan carries a rolling XXXX delinquency from XXXX of XXXX ; as a result of their own negligence and misapplication of payment. 

I was also given false information by an agent of XXXX, by the name of XXXX XXXX XXXX XXXX. XXXX ). XXXX XXXX advised that no payment history could be sent out on my account. She claimed to have spoken with NSMs area XXXX XXXX named XXXX XXXX. XXXX XXXX advised agent XXXX to say that no payment history could be sent out because my loan was in litigation. XXXX XXXX then refused to allow me a copy of my payment history after fabricating a story as to why she could not honor my requests on XXXX XXXX, XXXX. XXXX XXXX has violated the FDCPA, by giving me false information in connection with the collection efforts of my consumer account ; also falsifying claims of specific legal action to exist on my account in the form of litigation nature, which also was later verified as untrue by XXXX Supervisor XXXX XXXX on XXXX XXXX, XXXX XXXX via a separate phone call ). 

It was also made known as of XXXX XXXX, XXXX while speaking with XXXX agent XXXX XXXX XXXX. XXXX ), that although I had paid more than 20 % of my loan balance down, I was still being charged Premium Mortgage Insurance ( PMI ), which is a violation to HUD/FHA ; in spite of the fact that my government insured loan requires PMI to be stopped after 20 % of the loan has been paid down. Any legal expert would consider this action to be fraudulent and deception to over collect committing fraud against the United States Government. 

Further, XXXX received from me, via fax, a XXXX Written Request ( QWR ) on XXXX XXXX, XXXX. To date, XXXX has failed to respond with an acknowledgment letter, nor did they submit the documentation being requested within 30 days as outlined within RESPA and Dodd-Frank, which is also a violation. 

In addition, it is also my consensus that XXXX, has illegally charged me for over-the-phone payments ( phone pay fees ), which is in violation of Sections XXXX and XXXX of the Dodd-Frank Wall Street Reform and Consumer Protection Acts ( Dodd-Frank Act )  prohibition on engaging in unfair, deceptive, or abusive acts or practices ( collectively, UDAAPs ). This Bulletin also provides guidance to debt XXXX about compliance with the Fair Debt Collection Practices Act ( FDCPA ) when assessing phone pay fees. 

These types of deceptive mortgage servicing practices are frowned upon as a whole with public opinion and industry standards, as these acts ignore basic mortgage consumer protections and reporting rights to an extreme level. Worst of all, this abuse lacks moral fortitude and shear consumer decency in every fiber or aspect of the relationship between homeowner and mortgage servicer. 

XXXX has an obligation to provide accurate and fair service for hundreds of thousands of mortgage loans nationwide, and they have failed me ever since my loan was transferred to them in XXXX. Unless this negligence is corrected immediately, I will be forced to file a civil litigation case of my own against XXXX and its agents for conspiracy and lender abuse. I implore XXXX and its agents to correct my account balance, complete a full comprehensive audit of my account for errors, correct the errors on my credit reporting and accounting for the duration of my loan, and correct misreporting as a result of XXXX negligence of reporting delinquent ( when it was in fact not delinquent ). I also implore XXXX to refund monies that Ive paid into PMI, past the demarcation point of my loan having been paid down by 20 % of its balance. 

Thank you

Company response to consumer: Closed with explanation