Consumer complaint received 2020-09-28
Company: Mr. Cooper Group Inc.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
We entered into a Forbearance program due to COVID-19 pandemic. On XX/XX/XXXX I contacted Mr. Cooper ( the administrative company on behalf of Nationstar our mortgage lender ) to inquire about what we needed to do to prepare to come off of the forbearance plan. 

In XXXX and XXXX I contacted Mr. Cooper 3-4 times. Each time I answered a series of questions including if we are back at work and are we able to pay more than our mortgage rate. My response on each occasion was one of us is back ( my wife ) and no we are not able to take an increase in our mortgage. I was asked if we would be able to make regular payments moving forward to which I responded, Yes. After the third call we did not receive any updates for almost 3 weeks. Finally I was contacted and set the  Forbearance Agreement. This agreement was the FIRST TIME there was any mention of us being responsible for the accrued  escrow payments. Thi s is noted in the middle of the agreement, it was never disclosed entering into the agreement nor in any of the three prior discussions leading to the agreement. It is not highlighted or made to stand out in any way. However, we decided not to contest it and as we obviously were unable to come up with the additional {$3000.00} still in the middle of this pandemic situation, we opted to have the amount spread across future payments. 

Below is the timeline for the next issue regarding the escrow assessment conducted in XXXX : XX/XX/XXXX - XXXX Mortgage Payment is Due out of Forbearance in the amount of {$2800.00} XX/XX/XXXX - Payment was made to Mr. Cooper for {$1300.00} ( we had a {$1500.00} balance in unapplied funds for a partial payment made at the onset of COVID pre-Forbearance ) which represented the balance remaining to complete our mortgage payment. 

XX/XX/XXXX - Escrow Analysis conducted by Mr. Cooper XX/XX/XXXX - Notice issued by Mr. Cooper ( via their website ) advising of escrow increase XX/XX/XXXX - Mr. Cooper places funds {$2800.00} into suspended status and does not apply mortgage payment. 

XX/XX/XXXX - Receive email with notice from Mr. Cooper - " 16 Day Letter '' that we have not paid our mortgage XX/XX/XXXX - Contacted Mr. Cooper for a 120 minute discussion regarding the retrospective application of the escrow. I was informed that the escrow was applied incorrectly and should have been effective XXXX not XXXX. I was further advised that this would be corrected, placed on hold and then when the rep returned stating that she needed to have me report this error as well to another party and was going to transfer me. She placed me on hold and after 30 minutes of silence the call was disconnected. 

XX/XX/XXXX - First representative was helpful and advised that his is not the first time she had this issue arise with regard to the non-disclosure of the escrow accrual. Stated that other customers are reporting not having been told about them as well. I spoke with her and she transferred me to the Escrow Department rep which advised that they had to escalate it again to another escrow department. I spoke with XXXX agent # XXXX who advised she recognized the issue but stated that she could not change the payment or remove the erroneous amount. She brought in her manager XXXX XXXX. He too recognized the error and attempted to correct. However, he stated that the system would not allow him to fix it either. He advised me to send a communication to the research email which I did. That email went unanswered either in email or by phone, On XX/XX/XXXX I reached out again following the receipt of a 45 day notice. Spoke with two representative including XXXX XXXX - who advised the same as before that they recognized the error, are unable to correct it but would be following up. She provided her direct line as I advised no one has ever called me back. 

On XX/XX/XXXX I received my first communication from Mr. Cooper in the form a letter stating we have defaulted on our mortgage. Immediately I contacted them to inquire why this would be issued as we have been in constant communication regarding their error. I did make the payment in question and did not understand their handling of this situation. She informed me that because the payment had not posted on the " back end '' of the process they applied the escrow analysis to the same month. I did not accept this answer but she noted that there were no managers there to speak with at this time as they were now closed and she would have someone call me. As of XXXX today that call never happened. 

I reached out today - to no avail but advised that I would pay the balance under protest and would be reporting their failure to disclose important payment / re-payment terms as well as their handling of this situation to the appropriate organizations. At this juncture we have paid the balances due in full, under protest. However, were fearful of our credit being impacted as well as the status of our home. The stress of this COVID economy and its impact on our household is enough. The added stress of the organization that was " helping '' us on top of it was more than my wife could handle and we needed to ensure a clear record moving forward and would contest and report the issue. Today we paid a mortgage rate that is more than {$200.00} above what our normal payment would have been, they never corrected the error and we still have a balance for the accrued escrow we need to resolve.

Company response to consumer: Closed with explanation