Consumer complaint received 2022-06-13
Company: PLANET HOME LENDING, LLC
State: FL
Product: Debt collection
Sub-product: Mortgage debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
Fair Debt Collection Practices Act ( FDCPA ) prohibits debt collectors from engaging in unfair or deceptive debt collection practices ( for example, making false or misleading representations ) in connection with the collection of any consumer debt ( 15 U.S.C. 1692 to 1692p ). A consumer means any natural person obligated to pay a debt ( 15 U.S.C. 1692a ( 3 ) ).

In general, an attorney hired to foreclose a residential loan is a debt collector under the FDCPA if the attorney regularly engages in consumer debt collection, including through litigation ( Heintz v. Jenkins, 514 U.S. 291, 299 ( XXXX  ) ). 

A debt collector must : Provide a disclosure ( " mini-Miranda '' warning ) in its initial communication with a borrower. A formal pleading in a civil action is not considered an initial communication.

Send the borrower a debt validation notice containing the information required by statute within five days after the initial communication. 

Verify the debt if disputed in whole or in part and stop all debt collection efforts until verified. 

Identify itself as a debt collector in later communications with the borrower. 

( 15 U.S.C. 1692e ( 11 ) and 1692g ( a ), ( b ), ( d ). ) Per testimony provided by XXXX XXXX on XX/XX/XXXX in XXXX XXXX XXXX XXXX Florida, XXXX XXXX case # XXXX, XXXX XXXX primarily handles foreclosure actions. He is for all intents and purposes a " debt collector '' per the FDCPA. 
XXXX XXXX has failed to abide by the FDCPA requirements listed above. In addition, XXXX XXXX continues to make false statements and misrepresentations concerning federal regulations enacted during the COVID-19 pandemic.

1. The servicer must ensure the borrower has been given every opportunity to pursue all possible loss mitigation options in order to bring their loan current. Failure to do so could impact a future claim payment and could lead to other legal or administrative action ( s ) against the servicer. See Circular 26-20-12 ( 1 ), Extended Relief Under the CARES Act for those Affected by COVID-19.

2. Servicers should review loan files for all possible loss mitigation options no later than 30 days before the forbearance period is scheduled to end. Servicers should document such reviews in their loan servicing systems. If no loss mitigation options are possible, in cases where the home has equity, servicers must refer the file to the relevant XXXX XXXX XXXX for VAs consideration of a loan refunding. See Circular 26-20-12 ( 5 ) ( c ), Extended Relief Under the CARES Act for those Affected by COVID-19.

3. Rescission : This Circular is rescinded XXXX XXXX XXXX. See Circular 26-20-12 ( 5 ) ( c ) Change 1 ( 3 ), Extended Relief Under the CARES Act for those Affected by COVID-19.

4. At the time XXXX XXXX 26-20-12 was in effect, Plaintiff Planet Home Lending had me on 3 month increments of CARES ACT COVID-19 forbearance, with the first period starting on XXXX.

5. I would of exited this forbearance period on XXXX, with Plaintiff Planet Home Lending being required to review loan files for all possible loss mitigation options no later than 30 days before the forbearance period is scheduled to end. Servicers should document such reviews in their loan servicing systems. If no loss mitigation options are possible, in cases where the home has equity, servicers must refer the file to the relevant XXXX XXXX XXXX for VAs consideration of a loan refunding. 
6. No later than 30 days before the forbearance period was scheduled to begin would of been XX/XX/XXXX. The principal on the home at this time was roughly {$260000.00}. The appraisal on the home from the time of purchase listed the value at {$290000.00}. Based on as much the home would have had equity on XX/XX/XXXX, requiring the servicer to refer the loan to the VA for possible refunding. 
7. XXXX XXXXXXXX XXXX change 1 ( 2 ) ( 1 ) states in part Chapter XXXX of the XXXX XXXX XXXXXXXX XXXX lists two types of loan modifications that expressly allow for a servicer to expedite processing for a borrower affected by a disaster. These options are the VA XXXX XXXX and the XXXX XXXX XXXX. 
XXXX. VA XXXX XXXX change 1 ( 2 ) ( 2 ) states With this Circular, VA is clarifying that a servicer can enter into a VA Disaster Modification if the modification is made not later than the date that is 18 months after the date on which the COVID-19 national emergency ends without VA XXXX. Additionally, a servicer can offer a VA XXXX XXXX regardless of whether the borrower has entered into a COVID-19 forbearance plan and regardless of whether the COVID-19 national emergency caused the default. 
XXXX. VA  XXXX XXXX change 1 ( 2 ) ( 3 ) states Additionally, VA is allowing for Disaster Extend Modifications to extend the loans original maturity date for up to 18 months, in cases where the loan is modified not later than the date that is 18 months after the date on which the COVID-19 national emergency ends. VA does not normally allow for Disaster Extend Modifications to extend the loans maturity date more than 12 months beyond the original maturity date without VA preapproval. The servicer can offer a Disaster Extend Modification regardless of whether the borrower has entered into a COVID-19 forbearance plan and regardless of whether the COVID-19 national emergency caused the default.

In conclusion, the VA had directed loan servicers to offer loss mitigation options to defaulted borrowers where possible, and if no home loan options were possible, the home loan in question was to be referred to the VA for possible refunding. As much is material fact. It is also material fact that these requirements were not met. XXXX XXXX continues to make false statements and misrepresentations regarding as much. In addition, the foreclosure in question was filed while the home was under a CARES ACT COVID-19 forbearance. The attached documentation demonstrates as much and XXXX XXXX continues to make false statements and misrepresentations regarding as much.

Company response to consumer: Closed with explanation