Consumer complaint received 2023-01-11
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Mr. Cooper Group Inc. (VA)

SUMMARY : Post-COVID XXXX forbearance mortgage modification ignores FHA recovery options and replaces them with new mortgage at nearly double the rate on existing mortgage. DETAILS : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX. When I was XXXX XXXX I continued making mortgage pmts with dwindling savings, through XX/XX/XXXX, but then heard about the XXXX mortgage forbearance. I sought and received a XXXX mortgage forbearance. The forbearance period ended in XX/XX/XXXX. The mortgage company sent me a mortgage mod to get my mortgage back on track. Because I was still without a job I was only able to make XXXX payment. I asked for assistance, submitted an application, and spent the next 7 months sending documents to replace docs they rejected. I received notice of pending foreclosure in XX/XX/XXXX. Around the same time my old employer contacted me with a job offer. When I heard that, I contacted the mortgage company, let them know about the job and ask about the foreclosure. The rep said to submit another assistance application which would put foreclosure on hold. I did that, submitted the assistance application & the docs requested, but they kept saying there were errors or I didn't send the right docs, so I re-sent the docs, but the same thing, etc. etc. for several months. On XX/XX/XXXX, I also sent an email with the docs explaining that since I was reemployed and was able to resume making payments I was requesting an option I qualified for, XXXX of the XXXX Recovery Loss Mitigation Options announced in XXXX XX/XX/XXXX Letter to Mortgagees. The FHA letter said that for homeowners who could resume making payments ( like me ), XXXX XXXX Recovery Standalone Partial Claim was available to pay all past due payments, fees and other arrearages in order to reinstate the original mortgage so that the homeowner could resume making payments on the original mortgage. I got no response from the mortgage company to that email. Finally on XX/XX/XXXX I received a letter from the mortgage company with a mortgage mod offer. Even though XXXX XX/XX/XXXX XXXX XXXX XXXX states that the Mortgagee MUST evaluate Owner-Occupant Borrowers impacted by XXXX for a XXXX Recovery Standalone Partial Claim, the companys offer ignored XXXX XXXX Recovery Loss Mitigation Options and instead wanted me to accept a modified mortgage ( FHA XXXX Modification and Partial Claim ) creating a new mortgage with a rate nearly double my XXXX percent current mortgage rate. Even though they used a partial claim to reduce the principal balance, the new payment would still be nearly {$500.00} a month higher than my current payment. CONCLUSION : This mortgage company, Mr. Cooper ( aka Nationstar Mortgage ) has a history of abusive practices. I believe they are doing the same thing, ignoring FHAs guidance to consider me for an FHA XXXX recovery option beneficial to me and for which I qualify, in favor of forcing a new current-market-rate mortgage on me and greatly increasing my mortgage payments.