Consumer complaint received 2021-03-18
Company: Mr. Cooper Group Inc.
State: SC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
My husband lost his job in XXXX of XXXX due to corona virous. His unemployment benefits helped us maintain our mortgage payments and we have been fortunate enough to not miss any. At the end of XXXX and early XXXX we prepared to sell my mother 's home as she is in poor health conditions and has been living with us since we moved into the home in XXXX. We as a family began to strategies that due to her health conditions and my spouses current health conditions we may need to look at reducing our monthly mortgage payments as I would soon become the sole provider for our family. 
Our mortgage company Mr cooper had reached out to us several times trying to get us to sign up for a lower APR. rate on our current FHA loan. They made BOLD clams including things like dropping the hazard insurance and guaranteeing a lower monthly payment. In tandem with this a couple of things happened. The county of XXXX SC raised the value of our home quadrupling our home taxes, our mortgage company paid the amount in full and created a short fall in our escrow of over XXXX annually an increase that would have more than doubled our mortgage payment each month. From XXXX our monthly payment right around XXXX in XXXX the new payments would have exceeded XXXX monthly. We made the decision to pay off the short fall but our minimum payment still did not reduce leaving us with a new payment amount of XXXX. During all of this time we were in the process of refinancing the loan and discussing with agents at Mr Cooper and had a very difficult time getting regular updates from them and or underwriting and knowing exactly the status of our loan refinance request. 

I finally had a call with our XXXX XXXX on XX/XX/XXXX the date is very important because of the details he gave us at that time. He also continued to pressure us into sticking with mr cooper and moving forward with our closing date. It was at XXXX XXXX eastern time that we had the following discussion. 

We inquired about the minimum payment and why it would be so much higher that our payment in XXXX it was because of the tax increase. We told him that we had paid our escrow short fall and needed to pay down our loans principle so we could reduce our monthly rate, this was 100 % out of the question because of the loan type. We asked why we did not have a traditional loan in the first place and he belittled the fact that we couldnt afford the out of pocket cost up front. He insisted that mortgage rates would go up if we chose to restart the process and would need to wait 30 days with any other bank. All of this he explained to us and aggressively pressed us to commit to closing. Even though we needed time needed to understand more about our escrow and why we couldnt simply pay it down on the new mortgage amount. Finally I agreed that we would make a decision and proceed with closing just to have him to stop calling us and pressing for the sale. 

That isn't the worst part though two things happened 1 during this call XXXX XXXX XXXX assured me that mortgage rates were going up and began going up on XX/XX/XXXX and that this was direct reflections of the market after the attack on the capital. He almost boasted about this point. He also said that we can expect higher and higher interest charge rates with a more liberal government over the next two years. At no time did I disclose my political affiliation with XXXX XXXX. It is a violation of fair lending acts to deny credit or threaten credit terms including rate amounts because of someone's political affiliation. It is also discrimination to suggest such a thing since I am a XXXX woman with a XXXX  husband. XXXX XXXX XXXX was clear in his stance on our situation and his motives for detailing his political standings were unfounded and unwarranted, unless this is how Mr .Cooper conducts it business. I can see that this company has been in the headlines about inconstant handling of mortgages and refinancing due to covid 19. it seems as if this predatory behavior could be ingrained in the culture of Mr Cooper . And lastly the reason our payments and tax rate went up over 400 % was because XXXX county had us listed as nonresidents. As if we did not live full time in our home, it was the closing agent that pointed this out to us. When we went to the County office they agreed and confirmed we were being taxed at a at the nonresidential rate. I know this company is in TX and not in south carolina, but I would expect someone somewhere would see that a tax increase of this kind needs to trigger a red flag for a human review. 

The county is refunding me the tax dollars we paid for the short fall to Mr Cooper. The refinance appears to be going through though it does not reflect the accurate tax amount, it has been almost a week since our close with little to no response from the company. I finally called this morning when I received a late fee and a collection call on my old loan balance. I spoke with a wonderful woman that walked me through how to get the county to send in an amended tax document for the XXXX yeah and this should reduce our overall payment. But imagine flying blind during a refi not having any one to explain things clearly to you. At this time almost a week after closing we still have no idea what our new payment will be. And also we are feeling a sudden fear that you are beyond the 15 day mark on your mortgage payment due you now have fees and received a collections call. All due to the delay with paper work on the refinance! 

I am heartbroken for the little old ladies and men that dont have help during this difficult time. Heck we didnt have clear guidance and it caused us great financial hardship and additional stress and mental anguish. I dont know what our outcome would-be nor do I have a specific ask for recompense in mind but I feel that I would be doing a disservice by not raising my voice in complaint. 
Thank you

Company response to consumer: Closed with explanation