Consumer complaint received 2016-01-28
Product: Mortgage — Other mortgage
Issue: Application, originator, mortgage broker — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (GA)

Carrington Resolution Services ( CM ), currently claims to service an unsecured debt which was illegally originated by XXXX XXXX XXXX ( XXXX ), in XX/XX/XXXX after short sale of my property. Prior to short sale, I was told that the remaining balance outside of the short sale proceeds would be charged off in the amount of {$45000.00} and that I would be responsible for paying taxes via Form XXXX.To my surprise, at the time of closing for my short sale in XX/XX/XXXX, everything changed at the last minute. I was coerced into signing an unsecured promissory note in the amount of {$60000.00}, or my entire short sale would be irradiated causing me further financial harm. I was in a XXXX state of mind at the time of the transaction and was unable to afford proper representation, in order to protect my interests. However, I 'm now concerned about the multiple issues surrounding the net tangible benefit, deception and creditor abuse that I 've suffered as a result of origination of this unsecured mortgage debt.For starters my original loan from XX/XX/XXXX with XXXX ( XXXX ) is believed to have been a predatory loan, which is where this unsecured debt in question derives from. In fact, I 'm positive that my appraisal report from my XX/XX/XXXX transaction with XXXX, was padded in order to satisfy underwriting guidelines to qualify me for the original loan. I have addressed these concerns with XXXX, prior to filing for short sale back in XX/XX/XXXX. All of my request to investigate fell on deaf ears and ultimately I was forced to short sale the home after long, unsuccessful and endless attempts at modifying the loan with XXXX. XXXX, acquisitioned XXXX in XX/XX/XXXX and is known as XXXX of the worst deals in the financial services industry to date. XXXX, a subprime giant, was collapsed primarily due to its responsibility of originating loans which ignored basic underwriting guidelines. XXXX, is legally responsible for all XXXX, wrong doing and abuse, as well as they have been forced to settle more than XXXX dollars in legal fees and restitution behind XXXX 's illegal origination tactics.XXXX, and these practices embody the very definition of predatory lending at its worst ; from indulging in appraisal fraud, falsifying income, ignoring basic underwriting guidelines as well as an array of violations to The Real Estate Settlement Procedures Act ( RESPA ). Per the Fair Debt Collection Act ( FDCPA ), both XXXX and XXXX are required to provide all information to prove up the validity of the debt. There has been no evidence been provided by XXXX, XXXX ( XXXX ) nor CM surrounding the above mentioned loans origination, chain of title and all custodial servicing assignments are unclear.Due to the XXXX, XXXX and CM, failed response to my issues, I 'm now considering raising this matter in District Court as I feel it may be the proper venue for action under 28 U.S.C. Section 1391, because one or more of the Defendants maintains executive offices in or conducts business in the district relevant to where real estate is located in this concern.The interagency Statement on Subprime Mortgage Lending enumerates certain tactics that XXXX indicate predatory lending. Nonprofit groups have also published widely accepted guidance on these kinds of practices that may constitute predatory lending. Predatory loans typically combine risky loan features, thereby placing the borrower at an excessive risk of default or foreclosure.For purposes of this Complaint, " Combined-Risk Loans '' are loans that meet the definition of high-cost loan under HMDA. HMDA, which is an extension of The Home Ownership and Equity Protection Act ( HOEPA ) and enacted in XX/XX/XXXX as an amendment to the Truth in Lending Act ( TILA ) to address abusive practices in refinancing and home-equity mortgage loans with high interest rates or high fees.