Consumer complaint received 2015-12-03
Company: HSBC NORTH AMERICA HOLDINGS INC.
State: NY
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I am contacting the CFPB for help in trying to deal with my mortgage company, HSBC Mortgage Service Center. Please see the attached original mortgage note which shows this loan originated on XXXX/XXXX/XXXX with the original principal balance of {$410000.00} with a rate of 6.125 %. This was a full document loan with good credit. I had been promised a 5.875 % according to the attached commitment letter but at the time of closing, I was told the rate was locked at 6.125 %. As you can see on the HUD XXXX settlement statement, I was charged {$10000.00} to the broker and what I was informed well after the fact the broker also made the yield spread on the rate of {$7300.00} for a total of {$17000.00} on a rate and term refinance. The purpose of this loan was to combine the XXXX and XXXX liens which were both taken at the same time when the home was purchased. This loan also had PMI for being over 76 % LTV according to the disclosures so this should be considered a conventional loan. HSBC contacted me to modify my loan back in XXXX of XXXX reducing the rate from 6.125 % down to 5 % but was a step rate modification set to increase to 6 % XXXX and then to 6.125 % for the remaining 40 year term which was extended from 30 years. So this modification was raising my rate higher than it even was. And extending my term. The modified loan amount was {$400000.00} after including an unpaid principal balance of {$400000.00} making the new money amount only {$3400.00} which was just a little more than XXXX payment I was due as they told me to hold off paying that because the refinance was going through. At the closing, when I saw the rate would be increasing after 5 years, I was told not to worry, they will refinance or modify this loan before that happens when it is time to remove the PMI I was paying monthly.The reason my loan fell delinquent was because back in XXXX of XXXX, XXXX XXXX hit our area devastating many homes and leaving a wake of damage. Although the damages to my property was not severe compared to many, I still depleted my savings to remove a down tree across the driveway and repair the fence and roof. That same month due to the decline in business and damage to the offices, I had lost my XXXX job after 9 years with XXXX XXXX XXXX, which was a reduction in income of {$2400.00} a month. My monthly net income was nowhere near enough to cover my mortgage payment, let alone any of my other expenses. I was in shock after now having no savings and no additional income, I quickly applied for a loan modification which took several months for a decision to finally be made and I was declined. I was declined several times thereafter for different reasons from the value of the home to having too much debt when I have nothing on credit but my mortgage or not enough income which my income is at a 35 % ratio during the last review which is not out of range. The most recent denial was from XXXX/XXXX/XXXX stating I do not show sufficient income in addition to my monthly expenses. I was advised my monthly expenses were calculated to be much higher than they were and I was told it was due to accounts reporting to credit. I quickly pulled a tri-merge credit through XXXX and the only open credit account is this mortgage. There are no liens, no collections and no charge-offs or judgments. HSBC advised me to forward that credit and they will get back to me but never did and never addressed this. I was told I can just re-apply. I am now at the point I have been served with a foreclosure summons.

Company response to consumer: Closed with explanation