Consumer complaint received 2021-03-17
Company: AmeriHome Mortgage Company, LLC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
The issues described below and supported in the documents attached stem from the handling of a request for loan modification under the Cares Act. Our loan servicer is Amerihome Mortgage. We have an FHA loan that was originated in XX/XX/XXXX 

In XX/XX/XXXX, in anticipation of reduced income related to the Covid Pandemic, we sought forbearance. After 60 days, it was clear that the impacts from Covid would be severe and long term, rendering payments under our then interest rate of 5.25 % untenable. 

In XXXX of XXXX, we requested a loan modification and submitted the requested paperwork. From XX/XX/XXXX until XX/XX/XXXX, we were forced to submit and resubmit numerous documents, primarily due to Amerihome 's processing delays.

During this time we received numerous letters and phone calls indicating that we were not in compliance with the terms of our loan ; in addition, we were forced to re-apply to the program, not because we lacked the documentation, but because AmeriHome failed to process it timely. This of course has inflated our debt. 

Finally, on or about XX/XX/XXXX, AmeriHome offered a loan modification ( of the total balance without partial claim component, which we had explicitly requested as the most appropriate resolution to our circumstances ), with an interest rate of 2.875 %. We were told that the paperwork ( the final loan docs ) were forthcoming based on our acceptance and to make sure we paid the new monthly payment amount due XX/XX/XXXX. We paid the requested amount timely, on XX/XX/XXXX, as well as made inquiry of when to expect the modification docs and the final settlement of interest accrual. We were told that the docuementation was forthcoming. 

On XX/XX/XXXX, we received a call from an Amerihome representative indicating that the paperwork, i.e. the final loan docs, would be arriving shortly ; in fact, the documents arrived during the call. Unfortunately, the documents had material changes in terms, including a higher interest rate ( 3 % ) as well as a " partial claim component ''. I asked what was going on, and the agent informed me that my loan had been re-classified in error on or about XX/XX/XXXX. No notice was, or has been subsequently, sent regarding the reason for this re-classification. Additional issues with the loan docs included the failure to appropriately process and send them to the co-borrower, who resides 100 miles away, as well as the joint-tenancy description. ( Specific to the distribution of those docs for signing, AmeriHome had been informed of co-borrower status on numerous occasions, including in a written communication attached. ( which see " RE : Letter of Non-resident co-borrower ... .. '', dated XX/XX/XXXX ) Since that period of time I have been in contact with Amerihome at least 3 days per week ; it is not unusual that we need to communicate with Amerihome multiple times in the same day. Some weeks have required communication every day of the week, since often it is in response to a an Amerihome-initiated robocall which requires a call-back to clarify what the issue is. Of late, a majority of these calls have been collections related, even though we have made the XXXX, XXXX, and XX/XX/XXXX payments timely and Amerihome, through numerous represetatives, had clearly communicated its plan to provide the appropriate docs. 

Between XXXX and today to-date, we have received numerous assurances that the paperwork would be corrected. Each time we call Amerihome, a loss mitigation representative sends an email requesting an update from some other internal group ( s ), to no avail. 

On XX/XX/XXXX, an Amerihome agent said that we would have to re-apply for a loan modification, since we had been sent a formal denial letter on XX/XX/XXXX. Ironically, this denial letter is related to the loan docs that were sent and generated for the terms which we were never offered and for which Amerihome can not reasonably claim mutual assent. 

On XX/XX/XXXX, an Amerihome agent said to " hang on '' while they attempt to get the issue resolved. 

By our estimates to date, Amerihome 's delays in processing added an additional {$30000.00} in interest. This amount grows daily.

We assert that not only is AmeriHome in breach of contract, it also appears to be engaging in willful conduct designed to frustrate those endeavoring to avail themselves of the mechanisms the US Congress has legislated to assist those in crisis during the pandemic. It has created a system that allows them to claim an arms-length underwriting process designed to not function timely ; in so doing, they exacerbate the problems the Cares Act was designed to ameliorate. During this process Amerihome has sent us erroneous default documetation, notices of cancellation of our loan modification application, as well as continuous robocalls that we MUST consent to in order to preserve our home in reasonable expectation that Amerihome meet its service obligations.

Finally, as a debt-collection practice, this is also abhorrent, since in essence they gain commitment to pay based on, at best, misrepresentation, and at worst, fraud.

Included as attachments are references to issues we had during our initial loan modification application process. These documents do not reflect the sheer volume of material generated and sent to Amerihome, but we believe they are sufficiently concise to substantiate the above.

Thank you for your time in review and assignment of this matter.

Company response to consumer: Closed with explanation