Consumer complaint received 2024-09-23
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP (VA)

Heres an enhanced version of your CFPB complaint, incorporating relevant legal citations for maximum strength : -- - **Subject** : Complaint Regarding Mishandling of Forbearance and Loan Modification by Cardinal Financial **Mortgage Servicer** : Cardinal Financial **Property Sold** : XX/XX/XXXX **Account Information** : [ Include property address or any identifying info ] Dear CFPB, I am filing a formal complaint against Cardinal Financial for their mishandling of my mortgage forbearance and loan modification process, which led to an approximately {$20000.00} charge in unpaid interest that I was forced to pay at the closing of my home sale. Below are the key details and legal references that highlight how their actions violated consumer protection laws : 1. **Forbearance and Delays in Loan Modification** : I obtained a mortgage through Cardinal Financial Corp in XX/XX/XXXX for my primary residence at XXXX XXXX XXXX XXXX XXXX XXXX XXXX. This was a VA backed mortgage. I paid my mortgage until mid XXXX. A couple months into the XXXX pandemic, Cardinal Financial initiated my first forbearance, encouraging me to take it. Over the remainder of XXXX and early XXXX, Cardinal repeatedly pressured me into additional forbearances instead of providing clear repayment options. I accepted another forbearance instead of repaying in a lump sum which they made it seem like was my only option at that time. This pattern occurred a few more times. Their failure to clearly explain the financial implications of these forbearances may be a violation of the **Truth in Lending Act ( TILA ) ** ( 15 U.S.C. 1601 ), which mandates accurate disclosure of loan terms and conditions, including interest accrual during forbearance.

2. **Failure to Process Loan Modification** : In XX/XX/XXXX, after declining further forbearance, I requested a loan modification. Cardinal Financial sent the modification and refinance packet in XX/XX/XXXX, which I completed and returned in XX/XX/XXXX. However, they instructed me not to make any payments until I heard back or saw a change in my payment amount online. No further communication was provided, nor was my refinance processed in a timely manner. Under the **Real Estate Settlement Procedures Act ( RESPA ) ** ( 12 U.S.C. 2605 ), servicers are required to handle loss mitigation requests and provide timely responses. Cardinal Financials failure to respond in a reasonable timeframe constitutes a potential violation of RESPA.

3. **Forced Sale Due to Mismanagement** : In XX/XX/XXXX, I listed my home for sale out of concern for foreclosure, given the lack of communication from Cardinal. I sold the property in XX/XX/XXXX. At closing, I was presented with a payoff statement that included nearly {$20000.00} in unpaid interest from the forbearance period. I was told that, in order to avoid paying this amount, I would have to cancel the sale and wait for the refinance to be processedsomething Cardinal had failed to do over several months. This lack of transparency and failure to provide clear information about the accumulating interest may also constitute a violation of **Unfair and Deceptive Acts and Practices ( UDAP ) ** laws, which protect consumers from deceptive financial practices.

4. **Failure to Follow VA Loan Regulations** : As this was a VA-backed loan , Cardinal Financial was required to adhere to **38 CFR Part 36**, which outlines the rights and protections for VA borrowers. This includes providing clear options for repayment and modification following forbearance. Their failure to offer appropriate guidance and their delay in processing my modification may be in violation of VA loan servicing guidelines.

5. **Deceptive Practices under CARES Act Protections** : Given that this forbearance was initiated due to the XXXX pandemic, Cardinal Financials actions may also be in violation of **CARES Act** provisions. The Act requires that servicers offer clear repayment or modification options after forbearance ends. Their lack of communication and failure to provide a timely modification violated the protections I should have received under this legislation. 

I respectfully request an investigation into these practices and assistance in recovering the {$20000.00} in unpaid interest that I was forced to pay. I believe that Cardinal Financials actions not only violated federal regulations such as TILA, RESPA, and the CARES Act but also resulted in undue financial harm. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX