Consumer complaint received 2022-06-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LAND HOME FINANCIAL SERVICES (NY)

Complaint Letter Date : XX/XX/XXXX Re : Loan No. XXXX Borrower Name ( s ) : XXXX XXXX XXXX and XXXX XXXX XXXX XXXX Address : XXXX XXXX XXXX, XXXX XXXX XXXX XXXX Dear Sir or Madam : I am writing to notify the regulatory authority that my servicer, Land Home Financial Services XXXX Inc. ( hereinafter referred to as servicer ), has committed numerous severe violations in the servicing of my account and in violation of 12 CFR Part 1024.41 and 12 C.F.R. 1024.35, New York State Department of Financial Services 3 NYCRR Section 419.7, Real Estate Settlement Procedures Act, 12 U.S.C. 2605 ( e ) and XXXX XXXX Law Section 9-X. The following violations have occurred : XXXX. Failure to provide mortgage statements from XX/XX/XXXX to XX/XX/XXXX despite our numerous requests for a statement ; XXXX. Failure to provide a deferral per the XXXX XXXX XXXX Section 9-X law ; XXXX. Failure to pay for homeowners ' insurance despite escrowing for it ; XXXX. Failing to pay property taxes in a timely manner and causing the accrual of late fees ; XXXX. Failure to respond to and negotiate in good faith with the New York State Homeowners Assistance Fund ( hereinafter referred to as XXXX XXXX ) so as to resolve the delinquency ; XXXX. Failure to accept mortgage payments by any other method other than certified check ; XXXX. Wrongful application of fees and late charges ; XXXX. Wrongfully applying mortgage payments to months that should have been deferred XXXX. Failure of representatives to provide accurate information as required by law I have provided a timeline of the communications between myself and the servicer since the violations have occurred. Below please see timeline documenting the errors that have occurred. 
Further, I have provided exhibits and relevant law for further necessary elaboration. 
Timeline XX/XX/XXXX XX/XX/XXXX - I was in a COVID-19 forbearance and my loan was being serviced by XXXX XXXX XXXX At the end of my forbearance, I was not provided with any options to address my arrears. I was not provided with the option to defer as required by XXXX 9-X law. As of XX/XX/XXXX, I was informed by a XXXX XXXX representative that my arrears during the Covid-19 forbearance were {>= $1,000,000} and that I had to pay the entire balance by XX/XX/XXXX. 
XXXX XXXX My loan was transferred from XXXX XXXX to Land Home Financial Services XXXX I called Land Home Financial Services on XX/XX/XXXX and spoke with representative XXXX XXXX. I was informed by XXXX  that we owed from XX/XX/XXXX till XX/XX/XXXX. He said my arrears were {$22000.00}. In two weeks, my arrears allegedly jumped from {$18000.00} to {$22000.00}. Further, the dates we owed were inaccurate. I told XXXX that I would not be able to pay the arrears right now, but I could afford to give them our normal monthly payment of {$1800.00}. XXXX told us that we would have to mail the payment in. XXXX mentioned that we would have to complete a modification application but never provided us with the application. 
XX/XX/XXXX I submitted a request to the servicer requesting that they provide documentation as to the amount that the servicer alleged we owed. We received a response from the servicer that provided us with the Deed of Trust and executed Note dated XX/XX/XXXX. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX XXXX XXXX payment was sent early in XXXX. I paid more than my payment in the amount of {$5500.00} to the servicer via certified check on XX/XX/XXXX, the same date I sent in the XXXX payment. 
XX/XX/XXXX I called the servicer and requested that I receive a call back and never received a call back. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX - I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX I called the servicer again and spoke with representative XXXX. I was informed that she sent a notice to the loss mitigation department to have someone call me back and no one ever called. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. I received a letter from the servicer dated XX/XX/XXXX. The letter returned the checks sent in XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX stating that my loan is in foreclosure. 
XXXX XXXX I called the servicer again and requested that I speak to someone in the loss mitigation department. I was put on hold and then hung up on. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XXXX XXXX I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. I sent a second payment of {$5000.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX- I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX I called the servicer again and requested that I speak to someone in the loss mitigation department. I was finally able to speak to XXXX XXXX. XXXX stated that we were behind and said our only option was to modify the loan. I stated that we did not want a modification. We proceeded to communicate via email with XXXX and I requested that we be provided a transaction history. XXXX XXXX provided me a one page document which stated that I owed {$20000.00} in payments and then added {$7900.00} in LEGAL FEES. We are not in foreclosure nor have we ever been in foreclosure. I informed XXXX of this fact and he never responded. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX - I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX I again called my servicer and requested that someone call me back and I finally received a call XX/XX/XXXX. I stated that I had emailed XXXX XXXX and never heard back. 
They said that they would let XXXX know and he would get back to me. XXXX never contacted me. I applied for NYS HAF. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX- I received a tax statement from my servicer stating that I only paid {$4000.00} to the servicer in XXXX. This was wildly inaccurate and so I email XXXX again stating that this was wrong. XXXX did not respond. I received notice on XX/XX/XXXX from the Town that my property taxes were not paid in XXXX. I sent XXXX another email concerning my property taxes. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX I received a call from XXXX on XX/XX/XXXX. The phone number was from XXXX. XXXX said he would again send me a modification application and would look into the issue with my property taxes. Further, he said he would address the late fees we were assessed because the property taxes were paid late. I did not receive an application and never heard from XXXX again. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX - I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX I called my servicer on XX/XX/XXXX after I spoke with XXXX XXXX and was informed that my servicer was not responding to their inquiries. I spoke with XXXX who then left a message for XXXX to call me and took the phone number for XXXX XXXX. I sent a follow up email on XX/XX/XXXX with no response and then called again XX/XX/XXXX. I spoke to XXXX XXXX who was very rude and unprofessional. He kept on referring to my husband as XXXX XXXX 
XXXX and kept citing information about our file that was inaccurate. We told XXXX several times we believed he had the wrong file as he kept calling my husband by the wrong name and had wrong information. He continued, and when we finally became upset, XXXX then stated he did not need to talk to us when we were upset and then said I will not take any more payments from you and hung up on us. I received my first ever mortgage statement from the servicer on XX/XX/XXXX which shows that I have been getting assessed late fees every month since this all started. I paid {$1800.00} to the servicer via certified check on XX/XX/XXXX. 
XX/XX/XXXX I received yet another notice from the XXXX of XXXX that my property taxes were once again, not paid and that I was being charged late fees because my taxes were not paid. 
Exhibits and Relevant Law Error - COVID 19 Forbearance & NYS Law New York State regulated institutions are required under NYS Banking Law 119.3 COVID Relief Program and section 9-x ( 9-X ), to make forbearance of any payment due on a residential mortgage of a property located in New York, widely available to any individual who resides in New York and demonstrates financial hardship as a result of the COVID-19 pandemic.

DFS further states that Section 9-x requires the forbearance of all monthly payments due with respect to the mortgage, which includes all components of a mortgage payment that the borrower is obligated to pay to the lending institution. Therefore, if a borrowers monthly payment includes escrow for the purposes of paying taxes and insurance, the regulated institution must include those amounts in the forbearance and the subsequent loss mitigation resolution.

Once a forbearance has been granted to a qualified mortgagor as a result of financial hardship, the loan shall be subject to the following provisions ( 9-X Article 3 ) : 1. The mortgagor shall have the option to extend the term of the loan for the length of the period of forbearance. The regulated institution shall not charge additional interest or any late fees or penalties on the forborne payment ; or 2. The mortgagor shall have the option to have the arrears accumulated during the forbearance period payable on a monthly basis for the remaining term of the loan without being subject to penalties or late fees incurred as a result of the forbearance ; or 3. The mortgagor shall have the option to negotiate a loan modification or any other option that meets the changed circumstances of the qualified mortgagor ; or 4. If the mortgagor and regulated institution can not reasonably agree on a mutually acceptable loan modification, the regulated institution shall offer to defer arrears accumulated during the forbearance period as non-interest bearing balloon loan payable at the maturity of the loan, or at the time the loan is satisfied through a refinance or sale of the property. Any late fees accumulated as a result of the forbearance shall be waived.

5. The exercising of options provided for in paragraph ( a ), ( b ), ( c ), or ( d ) of this subdivision by a qualified mortgagor shall not be reported negatively to any credit bureau by any regulated institution.

Furthermore, Article 4 of Section 9-X states the following : Notwithstanding any other provision of law, adherence with the section shall be a condition precedent to commencing a foreclosure action stemming from missed payments which would have otherwise been subject to this section. A defendant may raise the violation of this section as a defense to a foreclosure action commenced on the defendants property when such action is based on missed payments that would have otherwise been subject to this section.

Furthermore, DFS states that Regulated institutions must inform borrowers who receive a COVID-19 related forbearance of all options available. In addition, regulated institutions may not prioritize or encourage borrowers to select one repayment option over any other, or place borrowers into loan modifications that are not affordable or sustainable.

I have the right to receive in writing the outcome or denial of a requested loss mitigation option/ review. The fact that I was never issued a written denial is in violation of RESPA Regulation X and RESPA COVID amendments.

My Covid-19 forbearance arrears have still not been deferred and in fact, payments I have made after the forbearance period have been applied to months that should have been deferred rather than the current months. I have only ever verbally been offered the option to apply for a modification despite never receiving a modification application after being promised several times. This is a direct violation of 9-X as my Covid-19 forbearance arrears should have been deferred.

Error Homeowners Insurance As shown in the above listed timeline, please see attached as Exhibit A homeowners insurance receipt where I was required to pay my homeowners insurance out of pocket as the servicer would not pay for my insurance.

Error - Property Taxes As shown in the above listed timeline, please see attached as Exhibit B and D communications from the Town of XXXX stating that the property taxes have not been paid and that late fees would be charged to my account. Further, I had to inform the servicer that the property taxes were not paid and that I was being assessed with late fees. 
Error NYS XXXX As shown in the above listed timeline, please see note that I spoke to XXXX on XX/XX/XXXX where I was informed that my servicer has failed to respond to repeated attempts to reach them by XXXX. This failure to respond has stopped me from being able to gain access to funds which could be used to reinstate my account and therefore was a failure to negotiate in good faith. 
Error # XXXX Certified Checks As shown in the above listed timeline, please see attached as Exhibit C copies of the certified checks sent to the servicer as I was told that they would not accept payment via any other method. 
Conclusion I respectfully request your agencys intervention in the servicing of my loan. Any assistance that you could provide would be greatly appreciated. 
My specific request from my servicer are as follows : I request that the forbearance arrears from XX/XX/XXXX XX/XX/XXXX be immediately deferred as required by New York State 9-X law. I request that there be an accounting and adjustment of my escrow account and that any late fees or accrued interest that has resulted due to the late payments of my property taxes and homeowners ' insurance be waived from my account. As the servicer did not cooperate to mitigate losses before referring the file for foreclosure and I have not received a 90-day notice, I request that legal fees and other wrongful fees be immediately removed from my account. I request that Land Home Financial Services XXXX Inc. investigate what has transpired in the servicing of my account and that the employees be trained in appropriate customer service skills and loss mitigation options. Finally, I request that my servicer reach out to XXXX immediately so as to assist in the potential settlement and reinstatement of my account. 
Thank you again for your assistance and please let me know if I can provide you with any other information on our file. 
Kind regards, XXXX XXXX XXXX