Consumer complaint received 2024-08-31
Product: Mortgage — VA mortgage
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: LD Holdings Group, LLC (KY)

Retaliation for initial complaint Company : Loan Depot This complaint is about a va loan where I was reported incorrectly to the credit bureaus since I was in a forbearance and current at the time the forbearance was approved, a data breech, the timing of the transfer to XXXX and unnecessary delays caused by loan depot. 
Loan Depot reported me as seriously delinquent on XX/XX/XXXX when I had a forbearance and was actively working with Loan Depot. I called them multiple times and was waiting for them to review an application to assume my loan. This took loan depot 4 months and then XXXX another XXXX months. An outrageously long time for an application to be reviewed. 
Why I needed a forbearance I had to stop working in XX/XX/XXXX due to increasing XXXX. This XXXX increased in XX/XX/XXXX and I had to take a few months off work and it was related to the covid pandemic and isolation. I took an early retirement for my health and applied for a forbearance on XX/XX/XXXX ( during the 120 days after the XXXX XXXX order was lifted ( so the XXXX XXXX  applies ). On XX/XX/XXXX, the loss mitigation application was approved. My loan was current at the time of the loss mitigation request and I was never behind in payments and I had a plan to finish the remodel and sell the home. 
The viable plan to have the buyers assume the loan On XX/XX/XXXX, the buyers submitted their loan assumption application. The plan was for them to pay the forbearance and take over the loan and pay all fees. My rate was XXXX XXXX until year XXXX then XXXX XXXX increase annually to XXXX of XXXX XXXX 
Loan servicer delays The loan servicer was unable to review the application until late XXXX ( almost 3 months of no review ). How do I know this? XXXX XXXX ( spelling may be incorrect ), who was the assumption servicer contact and only person able to review the assumption, told me that she could not get to the application until late XXXX due to multiple applications prior to mine and she was having to train staff in the department. 
I called multiple times. I requested to extend my forbearance since the application process was being delayed by loan depot. I told the servicer that every month the forbearance increases by {$4000.00}. Loan depot stated the application was being worked on since XXXX. However, the assumptions representative XXXX XXXX, who was the only XXXX assigned to this application told me the application was not being worked on and was not put in the computer yet in XXXX. 
The only review that was done in XXXX was by underwriting who told the servicer that the assumption could not be approved since there was money owed and I was late with my payments. In fact, XXXX XXXX did not call me with that information. Instead, she called the buyers and told them. This was my first realization of the misaligned goals with Loan Depot. 
I called XXXX XXXX and we argued about the ability to assume the loan. I had asked before I went this route and was told it was assumable and loan depot sent the application. By XXXX, my home was in contract and my realtor stopped showing the house. My VA representative, XXXX XXXX, called XXXX that day and by Monday the situation had suddenly changed. The excuse was that the underwriter had thought I was requesting to assume the loan from my husband. I am not married and I am the only owner on this home. The loan was assumable. 
Many times, I explained to XXXX that delaying this is costing me and that while we wait, no one can show the home or bid for the home. So the longer they delay, the less time I have to try to get another plan in place to prevent foreclosure. 
In XXXX, on the Friday before the cyber attack became news, XXXX called me stating that she can finally start to review the application this weekend. However, that XX/XX/XXXX Friday the cyber attack started and computers were down for XXXX weeks per the loan depot employee I spoke with. Thus, the application sat there for almost XXXX months with no review by the assumptions representative. It was around this time that my assumptions rep stopped calling me back. I found out later that a new assumptions representative was on the case, XXXX. I never received any notice of this change and had left messages for XXXX multiple times. 
Forbearance extension and closing So my forbearance had to be extended until XX/XX/XXXX to cover these unnecessary and costly delays. I requested compensation for having to wait on them due to their inability to staff correctly or keep their computer systems safe from hackers. Loan depot denied my request. XXXX XXXX a complaint resolution specialist said that with assumptions only XXXX person is assigned the loan, where new loans have about XXXX people to assist with an original loan. My loan servicer was not motivated to complete this loan assumption. I was unable to use a different loan company and so I was at their mercy Closing disclosures with the buyers were signed on XX/XX/XXXX and closing date was set for XX/XX/XXXX and then the loan was transferred to XXXX on XX/XX/XXXX, so closing was delayed again. I called and asked for the ability to close the loan on the XXXX anyway, if there was a grace period and there was nothing anyone could do. They would not give me the number to who could do something so I was stuck again. I filed the initial cfpb complaint, called lawyers, called hud and the va representative. 
CREDIT REPORTING On XX/XX/XXXX, Loan depot reported me as seriously delinquent to the credit agencies even though I was in a forbearance and had been current when I was approved for loss mitigation. I had to dispute this with the credit reporting agencies and my credit score is at XXXX now. I am paying more for insurance and I am not getting a good rate on my consolidation loan. 
I received a response from the dispute. Here is what is written in my credit report dispute. Please note that you say that reported me correctly and then modify the information. If you had reported me correctly, I would not have had to dispute this with the credit reporting agencies. It states the following : The information you disputed has been updated. LOAN DEPOT reports, We have verified that this item has been reported correctly. The following fields have been modified : ADDITIONAL INFORMATION, TERMS DURATION, ACTIVITY DESIGNATOR, DATE OF 1ST DELINQUENCY, and STATUS HISTORICAL ACCOUNT INFORMATION. 
Everywhere I read, the forbearance protected my credit since the loan servicer stated they have to report me as current. I was waiting on them to move on this assumption application and I assumed they would not report me as delinquent especially since they were causing the delay. In addition, I had a forbearance and was in contact with them and have given them a viable plan for assumption. However, I was wrong. Loan depot reported me as 120 days past due and seriously delinquent and my credit score dropped by over XXXX points in the last year. 
Data Breech In addition to all the above issues, I was sent a letter stating my sensitive personal information may have been accessed by an unauthorized third party. Loan depot offers 2 years of identity protection and credit monitoring. This was unexpected since during the transfer to XXXX in XXXX, I requested information on this data breech and was told that my data was not part of the data breech. Yet a few weeks later, I received a notice that my data was exposed. The notice was dated XX/XX/XXXX. I did not receive it until late XXXX. I had to freeze all my credit accounts and now I need review them regularly. I am closing accts to prevent use of an open acct I dont use and that is lowering my score also. 

IN SUMMARY Loan depot delayed review of the loan for 3 months, then scheduled closing, signed documents and sold my loan to XXXX causing another delay. Then they report me as seriously delinquent when I have been waiting on them. My forbearance was good until XX/XX/XXXX ( see Proof of forbearance letter from loan depot ) and never lapsed. 
On XX/XX/XXXX I received a letter regarding these issues and Loan depot apologized for the delays and inconvenience I experienced. That does not make up for the money that your company received due to these delays ( XXXX ). That does not make my credit better or my interest rates lower. It doesnt pay for the time and energy I have had to use to try to make you do your job This letter also stated as the forbearance was active at the time the servicing transfer occurred, the account was accurately reported to the credit agencies as current and in a forbearance. However, if you have credit reports reflecting information that you believe to be inaccurate, we respectfully request you forward legible documentation that may support your credit dispute so that we can further research your account and referred to the letter dated XX/XX/XXXX. The letter dated XX/XX/XXXX stated that after careful review of your loan, we have made the necessary adjustments for the forbearance and/or loss mitigation status in relation to the loans credit reporting. 
So here are some questions I would like answered. 
Did you report me as seriously delinquent or current, it seems that you are not sure and so I have attached proof ( you'd think you'd have this information )? Why would your company do this when I was waiting on your staff to review the loan assumption application? 
When did XXXX XXXX start to work on the assumption application? Include dates and actions taken since you have told me she started to work on this on XXXX and she told me she did not start until XX/XX/XXXX. 
What was the reason for the application to need XXXX months of review? 
When did XXXX XXXX stop working as my point of contact? Why did I not receive a letter with the change in the point of contact?

Why were the buyers told they could not assume the loan in the beginning and then were told this could take 120 days. Its almost like you planned it and were trying to discourage them. It took 120 days and not because we were delaying anything. 
Why did you have the buyers sign closing disclosures on XXXX and ask for them to pay the forbearance money when you were transferring them and knew this information in early XXXX? 
Why did you not safeguard my information and tell me I was not part of the breach and then send a letter stating I was part of it? 
Did you send XXXX my loss mitigation information? 



Names and contact numbers of people in this complaint XXXX XXXX, Escalation resolution specialist for Loan depot XXXX XXXX XXXX ( This may not be the correct spelling ) XXXX XXXX the XXXX loan servicer in assumptions. XXXX XXXX XXXX, VA representative XXXX XXXX Attachments Forbearance letter proving I was in a forbearance until XXXX on page XXXX of the document Data breech letter Letters XX/XX/XXXX and XX/XX/XXXX Credit report dispute information-Showing the changes made to my credit report -Equifax Credit report showing over 120 days late from XXXX. Hopefully that proves the reason for the credit dispute and you will investigate further per letter dated XX/XX/XXXX.