Consumer complaint received 2016-11-30
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC)
State: MN
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
Recently, I received a letter from Bayview Loan Servicing LLC ( " Bayview '' ) dated XX/XX/XXXX, and entitled " Changes to Your Mortgage Interest Rate and Payments on XX/XX/XXXX. '' Bayview is in violation of the terms of the agreements for my mortgage because they did not calculate the new payment correctly and did not provide timely or sufficient notice. 

Bayview is the Note Holder and/or Service Provider for my mortgage. However, I originally obtained the Mortgage with an Adjustable-Rate Note from XXXX XXXX XXXX dated, XX/XX/XXXX, and then later, a Modification Agreement with XXXX, dated, XX/XX/XXXX. I expected that the agreements signed by XXXX XXXX XXXX and XXXX would be honored by Bayview. 

1 ) Bayview is in violation of the Modification Agreement There are so many errors in Bayview 's letter dated XX/XX/XXXX, that I am concerned that Bayview is not aware of the XX/XX/XXXX Modification Agreement. Specifically, and for example : the new payment was calculated using a 20-year term, but should be calculated using a 40-year term as stipulated in the XX/XX/XXXX Modification Agreement. Additionally, Bayview 's letter states that " the interest rate has been changing every 1 month, '' but that is not correct. The interest rate has been the same since XX/XX/XXXX, and Bayview neglected to acknowledge that there is a maximum that the interest rate can change each year and a cap. 

2 ) Bayview Failed to Provide Timely Notice The XX/XX/XXXX, Adjustable Rate Note, Paragraph XXXX, ( I ), Notice of Changes, specifically states, " The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. '' Because Bayview 's letter is dated XX/XX/XXXX, which is seven days after the effective date of XX/XX/XXXX, Bayview violated the terms of the Note Agreement and created undue hardship for my family. Bayview should have provided notice before the effective date of XXXX XXXX, but did n't write the letter until XX/XX/XXXX. It is unreasonable to expect me to acquire the funds to make a mortgage payment which is nearly one-and-one-half times larger but neglect to inform me until after the effective date and only about 20 days before the payment is due. The Note Agreement states that I will be notified prior to the effective date. Bayview did not follow the terms of the Note Agreement. 
3 ) Bayview is in violation of the Notice Information Requirements The XX/XX/XXXX, Adjustable Rate Note, Paragraph XXXX, ( I ), Notice of Changes, also states, " The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. '' Bayview provided a mailing address, which according to Bayview 's letter dated XX/XX/XXXX, " must be used for all Error Notices & Information Requests. '' Bayview failed to provide the title of a person and phone number for any questions as also required by the Note Agreement. This is especially important to me because I think the new payment was calculated wrong, and because of the XXXX holiday there is less than 2 work-weeks until Bayview is expecting payment. There is not sufficient time to answer my questions and correct the mistakes.

Company response to consumer: Closed with explanation